Depreciation to take or not

[MAMalody]

I don't usually deal with this item (last time was 12 years ago), however, I have a disposition of a rental property in 2012. Depreciation and rental began at conversion from a personal residence in 2008. I seem to recall that you don't take the depreciation in the year of dispostion, however, I can't put my finger on that. Do I remember correctly? Can somebody give me a quick answer and maybe a source so I don't have to ask next time this comes up? Sorry to ask such a basic question, however, my mind (such as it is) seems to be stuck. Please advise.

[rfassett]

For real estate, you use the mid-month convention - half month when placed in service and half month when taken out of service.

[jainen]

>>I seem to recall that you don't take the depreciation in the year of dispostion<<

You are still thinking ACRS, old-timer! Nowadays you keep going. Just remember, real estate is mid-month convention so if (for example) the disposition was on June 30, that's five and a half months divided by twelve, not half.

[HaroldinGeorgia]

Hi, Mike

You do take depreciation in the year of sale. If you are using ATX, just complete the disposition tab on the Assets page, and it will calculate it for you.

Hope you and the family are doing well.

Harold Rosser - former Antioch resident

[MAMalody]

Harold, how are you doing, guy.? It is good to hear from you. I will have to tell Kaye. Oh, yes, thanks for setting me straight (along with the others).

Jainen, I guess I just found another way to date myself. Thanks for the input.