Midmonth Convention

Under the midmonth convention, if you place the asset in service after the midpoint of the period, no depreciation is taken for that period. If you place the asset in service on or before the midpoint of the period, a full period's depreciation is allowed. Similarly, if you dispose of the asset on or before the midpoint of the period, no depreciation is taken for that period. If you dispose of the asset after the midpoint of the period, a full period's depreciation is allowed.

Note: For a monthly accounting cycle, the 15th day of the month is considered the midpoint of the period.