Thank you very much!
I still have a question. So a 5-year property using Half-Year Convention MACRS can be depreciated 20% in Year 1 and 32% in Year 2. Is it 20% of the original basis? Or 20% of the 20% remaining basis?
Example, a $10,000 5-year asset:
Year 2023: depreciate $8,000
Year 2024: depreciate $2,000 x 20% = $400? or depreciate $10,000 x 20%= $2,000?
Or
Year 2023: depreciate $8,000 + $2,000 x 20% = $8,400
Year 2024: depreciate $2,000 x 32% =$640
Thank you for your help again!
