Midquarter applicability report

Only assets using a Half-year convention will qualify for mid-quarter. There are various parameter based on the Property Type, Placed in Service date, Depreciation Method and Estimated Life of each asset which will apply toward the asset being qualified for the Mid-quarter convention.

The Quarterly Acquisitions and the Mid-quarter Applicability reports seldom tie. The definition of the Mid-quarter Applicability Report is The report displays the total depreciable basis of qualifying MACRS property placed in service in the selected year.

To qualify, an asset must:

• Use property type P, A, or T (and sometimes R)
• Use a MACRS depreciation method (MA, MF, MT, AD, AA)
• For Property Type R assets, specifically, only MF100 or MA100 with a 15 year life qualify.

Note: If an otherwise qualified asset is expended under Section 179, the value of that asset will not counted towards the 40% for Mid-quarter applicability and will not appear on the report.

Real property assets placed in service in the selected year would not qualify as Mid-quarter asset with the exception on Leaseholds (see How to add or edit a Qualified Improvement Property  for more information) which is why the Mid-quarter Applicability Report would show a lesser value than the Quarterly Acquisition Report.