The statement is false. ACRS does not automatically allow one-half year of cost recovery in the year of disposition, as the deduction depends on the time the property is in service.
The statement that all eligible real estate under ACRS is permitted one-half year of cost recovery in the year of disposition is False. The Accelerated Cost Recovery System (ACRS) was established by the Economic Recovery Tax Act of 1981 and later modified by the Tax Reform Act of 1986, introducing the Modified Accelerated Cost Recovery System (MACRS). Under ACRS, the cost recovery deduction for the year of disposition is based on the period during the year the property is in service. Therefore, if a property under ACRS is sold before being in service for the entire year, it would not automatically get a half-year of cost recovery.
In conclusion, while ACRS does accelerate depreciation for certain types of real estate, it does not always permit a half-year of cost recovery in the year of disposition, as this depends on the specific conditions and the length of time the property was in service during the year it was disposed of.