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Mid$-$Quarter Convention Impact

Car purchased for $$35,000$

Placed in service on October $15,2023$

$5-$year MACRS depreciation

No Section $179$ or Bonus Depreciation taken

Calculate the depreciation deduction for Year $1$ considering the mid$-$quarter convention.

$2.$ Section $179$ and Reduced Basis

Car purchased for $$28,000$

Placed in service on June $15,2023$

Section $179$ Expense elected: $$8,000$

$5-$year MACRS depreciation

Calculate the depreciation deduction for Year $1$ considering the reduced basis after the Section $179$ expense.