residential rental property is depreciated over 27.5, straight line, mid-month convention.

1. What does mid-month convention mean?

2. Complete spreadsheet using formulas only to display percentages. Depreciation excel blank.xlsx

3. Comment on the following table

4. Comment on the following :You purchased a single family rental house for $185,000 and placed it in service on February 8. The sales contract showed that the building cost $160,000 and the land cost $25,000. Your basis for depreciation is its original cost, $160,000. This is the first year of service for your residential rental property and you decide to use GDS, which has a recovery period of 27.5 years. Using Table 2-2d, you find that the depreciation percentage for property placed in service in February of Year 1 is 3.182%. That year's depreciation deduction is $5,091 ($160,000 x 3.182% (0.03182)).

5. comment on what you learned while doing this problem

d. Residential Rental Property-GDS (27.5-year S/L with mid-month convention) \begin{tabular}{|l|l|l|l|l|l|l|} \hline \multirow{2}{*}{} & \multicolumn{5}{|c|}{ Use the row for the month of the taxable year placed in service. } \\ \cline { 2 - 7 } & Year 1 & Year 2 & Year 3 & Year 4 & Year 5 & Year 6 \\ \hline Jan. & 3.485% & 3.636% & 3.636% & 3.636% & 3.636% & 3.636% \\ Feb. & 3.182 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ March & 2.879 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ Apr. & 2.576 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ May & 2.273 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ June & 1.970 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ July & 1.667 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ Aug. & 1.364 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ Sept. & 1.061 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ Oct. & 0.758 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ Nov. & 0.455 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ Dec. & 0.152 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline \end{tabular}