129k views
5 votes
Under the alternative depreciation system (ADS), the half-year convention must be used for personalty.

a) True
b) False

User Regiane
by
8.1k points

1 Answer

3 votes

Final answer:

The claim that the half-year convention must be used for personalty under ADS is false. ADS typically mandates straight-line depreciation over its own recovery period and may require the mid-month convention or not specify a convention for certain types of property.

Step-by-step explanation:

The student's question pertains to the alternative depreciation system (ADS) under U.S. tax law and the conventions applicable to the depreciation of property. Under ADS, the statement that the half-year convention must be used for personal property (personalty) is false. ADS generally requires the use of the straight-line depreciation method over the ADS recovery period, and specific conventions like the half-year, mid-quarter, or mid-month may not be applicable as they are under the General Depreciation System (GDS). For certain types of property, the mid-month convention is required under ADS, while other types of property may not be subject to any specific convention.

User Boris Gougeon
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories