Question

Taxpayers must use the mid-month convention when more than 40% of the personal property is placed in service during the last three months of the tax year.

True / False.

Answer 1

False

Step-by-step explanation:

Taxpayers must use mid-quarter convention.

This convention states that all taxpayers must use it when more than 40% of their personal property is placed in service during the tax year's last three months.

This convention states that a property is treated as placed in service and/or disposed of in the quarter's middle in which the property is placed in service and/or disposed of.