Straight Line mid-month calculation

Rules for the Straight Line (SL) Depreciation Method for depreciation in the month of service and on disposal.

SL is short for Straight Line Mid-Month.

With this depreciation method:

• If the asset’s Placed-in-Service Date is before the 16th of the month, the asset will take depreciation in the month it is Placed-in Service
• If the asset’s Placed-in-Service Date is after the 15th of the month, the asset will NOT take depreciation in the month it is Placed-in Service

Alternatively, on disposal:

• If the asset’s Disposal Date is before the 16th of the month, the asset will NOT take depreciation in the month of disposal
• If the asset’s Disposal Date is after the 15th of the month, the asset will take depreciation in the month of disposal

Note: If the asset takes depreciation, it will take a full month's depreciation, not a half-month's (15 days) depreciation.