This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The half-year convention is the default for personal property, granting six months of depreciation in the first year regardless of the purchase date.

- The mid-quarter convention is a mandatory test triggered if over 40% of the basis of personal property is placed in service in the final three months of the year.

- When the mid-quarter convention applies, it affects all personal property placed in service during that year, not just the assets from the fourth quarter.

- The mid-month convention is exclusively used for real property (residential rental and nonresidential real) and is never optional.

- A common exam trap is incorrectly including real property or Section 179 property in the 40% mid-quarter test calculation.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep