FORCE Mid-Quarter convention?

[jmc]

The property under ADS was purchased in December, so Mid-Quarter Convention applies.

But, my software company support says "If the mid quarter is not used, then it will try using a different method and will take the half year convention. You can change the asset here.... To explicitly include or exclude current year assets from the automatic mid-quarter determination and calculation, FORCE Mid-Quarter Options."

If I want to accelerate depreciation, am I allowed to FORCE Mid-Quarter to use Half-year convention?

[OtisMozzetti]

cannot elect

The property under ADS was purchased in December, so Mid-Quarter Convention applies.

But, my software company support says "If the mid quarter is not used, then it will try using a different method and will take the half year convention. You can change the asset here.... To explicitly include or exclude current year assets from the automatic mid-quarter determination and calculation, FORCE Mid-Quarter Options."

If I want to accelerate depreciation, am I allowed to FORCE Mid-Quarter to use Half-year convention?

You are not allowed to elect the mid-quarter convention. What can in some instances be done is to change the choice of 179 deductions to affect whether or not the mid-quarter convention applies. See the "Planning Tip" at the top of page 9-13 in TTB.

Whether or not the mid-quarter convention applies is determined by when all MACRS property is placed in service, not just by when "the" one piece of property is placed in service. (TTB 9-12)

[erchess]

Simple Question Here

Was there ever a time when you could elect MQ for all MACRS property placed in service in a given year? I have never done this but I have always thought that I could if I wanted to.

[OtisMozzetti]

was there ever a time?

Was there ever a time when you could elect MQ for all MACRS property placed in service in a given year? I have never done this but I have always thought that I could if I wanted to.

My understanding is that you currently cannot voluntarily elect the MQ convention, you can only arrange to have 40% of the depreciable basis--after 179 elections--be put into service during the last 3 months of the year, in which case the MQ convention applies.

I don't know for sure whether this has been continuously the rule since the 1986 Tax Reform ACT established MACRS. Nonresidential real property, residential rental property, railroad grading and tunnel bores are not included in determining whether the MQ convention applies.

[erchess]

Otis is right about current rules

according to the way TTB is written.