Solved
Does tubotax calculate the depreciation correctly?
cost is $16,764
depreciation for 27.5 years
started to use it on the first day of 2024, 1/1/2024
Should it be depreciated for $609.6 ( $16,764 / 27.5) in 2024?
But why does TT say $584?
Yes, it is being computed correctly.
The "MM" in MACRS convention means "mid-month." That means an asset only gets 1/2 of a month depreciation in the month put in service and the last month in service under this convention. So, your monthly depreciation is: $16,764 cost/27.5 life /12 months in a year=$50.80 per month x 11.5 months = $584 depreciation expense.
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