Midquarter Applicability Report: Report Columns

The following guidelines provide detail on the nonstandard columns that appear on the Midquarter Applicability report.

Column	Notes
Placed in Service	This column shows the year divided into two date ranges. The first date range in this column represents the time from the beginning of the fiscal year up to the last three months of the fiscal year. The second date range represents the last three months of the fiscal year.
Midquarter Basis	This column displays the basis of the qualified MACRS property that was placed in service during each date range. The basis of the property represents the cost of the asset before the reduction of the 168 Allowance.
Percent	The system divides the depreciable basis for each date range by the total depreciable basis and displays the result as a percentage.
Determination	The last line of the report indicates whether more than 40% of the aggregate depreciable basis of newly acquired qualifying MACRS property was placed in service during the last three months of the tax year. If the depreciable basis exceeds 40%, then you must use the midquarter convention for qualifying property. If the depreciable basis is 40% or less, then use the half-year convention.