MACRS Real Property

MACRS real property is calculated using the straight-line method with a midmonth convention. A half month's depreciation is allowed in the month of acquisition and in the month of disposition. As in the straight-line method, the amount of depreciation computed for a full year is prorated over the number of months in the short-year period. For example, if an asset were purchased in the second month of a 9-month short year, the annual short-year depreciation would be 7.5 times the monthly depreciation amount.