Twelve years ago, Mr$.$ Davis contributed a property that includes a building and land to Davis Office Furniture, a C corporation.$$

The property will be used for office and warehouse space.

Mr$.$ Davis acquired the property and used it as rental property for five years prior to the contribution to the corporation.$$

The property was exchanged for a $30$ percent equity interest in the corporation.$$

After the contribution of the property, Mr$.$ Davis had an $80\%$ interest in the corporation.$$

The adjusted tax basis in the warehouse property at the time of the contribution to the corporation was $$1,500,000($building $$900,000$ and $$600,000$ land$).$ This basis reflects depreciation taken up to the date of the contribution.$$

The building's appraised FMV on date of contribution to the business was $$1,650,000$

$$

$$Note: $$This property is a non$-$residential real estate with a recovery period of $39$ years using a mid$-$month convention. It does not qualify for Sec $179$ or Bonus Depreciation, only MACRS.

The MACRS mid$-$month convention requires the TP to take one$-$half of a month of depreciation in the month$/$year of acquisition and one$-$half month in the year of disposal. Keep in mind that the TP owned this property as an investment property prior to the contribution of the property to the corporation. Therefore, in the year of acquisition, the half$-$month convention was used before the property was contributed to the corporation. However, in the year of disposal, the mid$-$month convention must be used in the year of disposal. Therefore, in the year of sale, only $11\mathrm{.}5$ months of depreciation is taken.

Considering that the property is depreciable property, determine the adjusted basis of the property on the date of sale. You will need to consult the depreciation tables. Assume that the contribution of the property to the corporation was made on the first day of the year and the corporation's sale of the property was made on the last day of the year $($twelve years later$).$ Be mindful that the mid$-$month convention is built in the MACRS table for the year of acquisition but not in the year of the disposition $($sale$)$

I am confused how to calculate $11\mathrm{.}5$ years, my calculation was this:

The first$-$year depreciation in the table is $2\mathrm{.}461\%$

$900,000*2\mathrm{.}461\%=22,149$

Depreciation for $11$ years:

$900,000*2\mathrm{.}564\%*11=253,836$

Total depreciation for the$$building is $22,149+253,836=275,985$

Building adjusted basis at the date of sale $900,000-275,985=624,015$

Adjusted basis at the date of sale $600,000($land$)+624,015($building$)=1,224,015,$

Please help with correct calculation and explain why it should be $11\mathrm{.}5$ years? $($ I am confused$)$ Please help, thank you very much, I appreciate your help.