Final answer:
The statement is false; ACRS does not allow a half-month of cost recovery for real estate in the month of disposition. This is a feature of the Modified Accelerated Cost Recovery System (MACRS), which generally applies a half-year convention for property.
Step-by-step explanation:
The statement that 'All eligible real estate under ACRS is permitted one-half month of cost recovery in the month of disposition' is false. The Accelerated Cost Recovery System (ACRS), which was established by the Economic Recovery Tax Act of 1981 and modified by the Tax Reform Act of 1986, allows for the depreciation of property over a specified recovery period. However, the ACRS does not permit a half-month of cost recovery in the month of disposition; this is actually a feature of the Modified Accelerated Cost Recovery System (MACRS), which succeeded ACRS and allows for a half-month convention for personal property. Under MACRS for most types of property, a half-year convention is applied, meaning only half of the annual depreciation expense is allowed in the first and last years of the recovery period, regardless of when the property is disposed of during the final year.