Does tubotax calculate the depreciation correctly?

[manbeing]

cost is $16,764

depreciation for 27.5 years

started to use it on the first day of 2024, 1/1/2024

Should it be depreciated for $609.6  ( $16,764 / 27.5) in 2024?

But why does TT say $584?

[MindyB · Accepted solution]

Yes, it is being computed correctly.  

The "MM" in MACRS convention means "mid-month."  That means an asset only gets 1/2 of a month depreciation in the month put in service and the last month in service under this convention.  So, your monthly depreciation is: $16,764 cost/27.5 life /12 months in a year=$50.80 per month x 11.5 months = $584 depreciation expense.