Loading…
Enrolled Agent ReadyStudyingPart 1
Switch exam
Special Enrollment Examination
Part 1SEE Part 1: Individuals✓Part 2SEE Part 2: BusinessesPart 3SEE Part 3: Representation, Practices and ProceduresA calendar-year business placed 7-year property in service in 2025: $20,000 in February and $80,000 in November. It elected out of bonus and section 179. What is its 2025 MACRS depreciation?
$80,000 of $100,000 (80%) was placed in service in the last quarter, over 40%, so the mid-quarter convention applies to all personal property for the year. Table A-5 rates for 7-year property: 25.00% for first quarter and 3.57% for fourth quarter: $5,000 + $2,856 = $7,856. Source: IRC 168(d)(3); Pub. 946 (2025), Table A-2 and Table A-5. Tax year: 2025 (law as of 31 Dec 2025).
Applying the mid-quarter convention only to the fourth-quarter asset.
Practice more Part 2 Depreciation, Basis and Dispositions questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practicing →Original study material mapped to the public IRS SEE content outlines; not a real exam question.Not affiliated with or endorsed by the IRS or PSI. Verify figures and rules against current guidance before relying on them.