4 9 You are explaining to a new business client, Fred, how businesses are allowed only a half year of MACRS depreciation for personal property in the acquisition and disposition year This is NOT what Fred expected and he would like to know if there is any exception to this rule You should reply that there is an exception when A the property is placed in service and disposed of during the same year B added first year depreciation deductions are allowed for alternative minimum tax purposes for the year in which the property is placed in service C more than 4 0 of the total basis of the property placed in service during the year is placed in service during the last three months D gains from the sale of depreciable tangible personal property are treated as capital gains

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Question: 4 9 . You are explaining to a new business client, Fred, how businesses are allowed only a half - year of MACRS depreciation for

49 .

You are explaining to a new business client, Fred, how businesses are allowed only a half

-

year of MACRS depreciation for personal property in the acquisition and disposition year. This is NOT what Fred expected and he would like to know if there is any exception to this rule. You should reply that there is an exception when:

.

the property is placed in service and disposed of during the same year.

.

added first

-

year depreciation deductions are allowed for alternative minimum tax purposes for the year in which the property is placed in service

.

more than

40 %

of the total basis of the property placed in service during the year is placed in service during the last three months.

.

gains from the sale of depreciable tangible personal property are treated as capital gains.

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