"Jim Chapman" <Big...[at]fuse.net> wrote:

- quote -

Don't get hung up reading the publications (they aren't
"authoritative"). Instead, read the regs under IRC 168. I
believe you will find that, in so many words, they define
"real property" FOR THIS PURPOSE as something having a
recovery period of 27.5 years or longer. So, I would
conclude that the MM convention is simply not available for
the 15 year recovery period.

MTW

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I want to use fifteen year, straight line, mid-month
convention on some land improvements (sewers, parking lot,
driveway,etc on nonresidential real property). My tax
preparer and my Turbo Tax for Business are fighting against
the use of mid-month and want to use half year. There is no
disagreement on the fifteen year or the use of straight
line.

I pointed out that Publication 946 clearly states that real
property should use the mid-month convention and this works
out nicely for me in the short tax year. The tax preparer
says there is no table for fifteen year mid-month so they go
to Chart 1 and use half year or sometimes mid-quarter. I say
the heading on Chart 1 says use Chart 2 for real property.
They say there is no fifteen year in Chart 2. I say so you
calculate which is easy for mid-month.

I phoned the IRS business depreciation group and the lady
with 22 years experience wanted to use the table from Chart
1. After digesting my argument and spending many minutes
reading the tax code, she stated she could not understand
the inconsistency. When queried about a possible
typographical error she stated the wording had been the same
"forever".

I am puzzled that tax software after a decade would be
incorrect on a frequently used tax step and am doubtful
about the expertise of my out of state tax preparer. Of
course the problem may be in my inability to read the IRS
publications correctly.

--
Jim Chapman

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >