Question

For real property, the ADS convention is the mid-month convention.

a) True
b) False

Answer 1

The given statement "For real property, the ADS convention is the mid-month convention" is True. Option A. This applies to the depreciation calculation for tax purposes.

Step-by-step explanation:

The statement regarding real property and the ADS (Alternative Depreciation System) is true: for real property, the ADS convention is indeed the mid-month convention.

The mid-month convention applies to the depreciation of real property under ADS, which stands for 'Alternative Depreciation System,' a method used in calculating depreciation for tax purposes.

Under the ADS, residential rental property is depreciated over 30 years, nonresidential real property over 40 years, and qualified realty under 40 years, with depreciation beginning in the middle of the month in which the property is placed in service.

Hence, the statement is true. Option A.