Wil Be capifalzed and added to the basis of depreciable property, with the exception of seal estate taxes paid dunng this perod May be deducted on a taxpayer's Schedule A when the property is mixed-use property This includes 100% of the mongage interet Mark for follow up Question 37 of 75. In the year of disposition, how is the depreciation deduction calculated for real rental property that has been depreciated using the mid-month conventon The depreciation in the year of disposition will be the same as the depreciation in a regular year. The deductible amount will be determined by the month in which the asset is disposed No deduction is allowed in the year of disposition. Only the amount of depreciation actually claimed in prior years is allowable. Mark for follow up the 'and. Tyler sold the rental house in Au