Final answer:
The statement is True. Eligible real estate under ACRS is permitted one-half month of cost recovery in the month of disposition.
Step-by-step explanation:
The statement is True. All eligible real estate under ACRS (Accelerated Cost Recovery System) is permitted one-half month of cost recovery in the month of disposition. This means that when a real estate property is disposed of, the owner can claim one-half month's worth of cost recovery as a deduction in that month.
For example, if a property is eligible for $1,200 in cost recovery deductions per year, and it is sold in July, the owner would be able to claim $100 (one-half of $1,200) as a deduction for that month.