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Your property is almost fully depreciated. Your yearly depreciation amount of $2136 only counts for full years. The beginning and ending years are prorated. Since you placed your property in service in February your first year, your percentage is 3.182, not the 3.636% for a full year. You also took it out of service in March.
Mid-month convention used.
If you dispose of residential rental or nonresidential real property, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by a fraction. The numerator of the fraction is the number of months (including partial months) in the year that the property is considered in service. The denominator is 12.
Example. Pub 946
On July 2, 2018, you purchased and placed in service residential rental property. The property cost $100,000, not including the cost of land. You used Table A-6 to figure your MACRS depreciation for this property. You sold the property on March 2, 2020. You file your tax return based on the calendar year.
A full year of depreciation for 2020 is $3,636. This is $100,000 multiplied by 0.03636 (the percentage for the seventh month of the third recovery year) from Table A-6. You then apply the mid-month convention for the 2½ months of use in 2020. Treat the month of disposition as one-half month of use. Multiply $3,636 by the fraction, 2.5 over 12, to get your 2020 depreciation deduction of $757.50.
