Sum-of-the-Years'-Digits, Half-Year Example

Using the same example for method YH as for method YS, the first-year sum-of-the-years'-digits, half-year deduction is $254.55.

6/12 x (10/55 x $2,800) = $254.55

Under the half-year convention, the first-year calculation is true regardless of the month in which the asset was placed in service within the year.

The second-year calculations is then computed as follows:

6/12 x (10/55 x $2,800) = $254.55

6/12 x ( 9/55 x $2,800) = $229.09

Total year 2 depreciation = $483.64