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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I was wanting to know i purchased a semi truck in the 4th

Customer Question

Hello i was wanting to know i purchased a semi truck in the 4th quarter of 2015, 11/5/2015 to be exact. My question is do i have to start depreciation on 2016 taxes with Mid-quarter method? Or do i wait until 2017 taxes to begin with the half year method?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

You will have to start the depreciation in the year you placed the truck in service. If you bought the truck and immediately started using it for business in November 2015, you will have to start your depreciation on your 2015 tax return. If you have to use mid quarter or mid year depends on how much of capital asset you purchased in the entire year. If you purchased more than 40% of your capital asset (car, equipment, machinery) in last quarter, you will need to use mid quarter convention. Otherwise you can you mid year.