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Under the alternative depreciation system (ADS), the half-year convention must be used for personalty.

a) True
b) False

User Regiane
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1 Answer

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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
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