Follow-up comments:
- The screen shot for prior year depreciation reflects SL/HY
- Assuming this is correct, and mid-quarter does not apply, the table percentage is 3.33 for the initial year placed in service.
- When you do the math, the result is $158; 4,756 x 3.33% = 158
- Your calculation at arriving at $79 is not correct. Half-year convention is used for almost all property except residential rental property and nonresidential real property (assuming mid-quarter does not come into play). That is why your 4562 reflects SL/HY.
- For this property, since mid-quarter does not appear to apply, you need to use 1/2 year convention
- So for the first year placed in service the calculation is $4,756 / 15 = $317 then divided by 2 (for half year convention) = 159
- So there is $1 rounding, but that is normal.
- So in summary, your prior year depreciation of $79 is not correct based on HY convention.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
