REG Section

REG MACRS Depreciation Practice Questions

Master MACRS depreciation with focused practice on property classes, conventions, and special provisions tested on REG.

What You'll Practice

Our questions are aligned with the AICPA CPA Exam Blueprints, the authoritative guide for what's testable.

MACRS property class assignments
Half-year, mid-quarter, and mid-month conventions
Section 179 expense election
Bonus depreciation rules
Listed property limitations
Depreciation recapture on disposition

Common Traps to Avoid

These are the patterns that trip up candidates. Our questions specifically target these areas so you won't fall for them on exam day.

1.Using half-year convention when mid-quarter applies
2.Forgetting mid-month convention for real property
3.Missing listed property business use percentage rules
4.Confusing Section 1245 and Section 1250 recapture
5.Not knowing when ADS (straight-line) is required

7-Day Depreciation Mastery Plan

Day 1
Review MACRS property classes
Day 2
Practice convention selection rules
Day 3
Drill Section 179 and bonus depreciation
Day 4
Review listed property rules
Day 5
Practice disposition and recapture
Day 6
Review ADS requirements
Day 7
Comprehensive depreciation quiz + review

Try 10 Free Practice Questions

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Why Our Question Bank

Property class quick reference
Convention selection drills
Section 179/bonus calculations
Recapture scenario practice
Track progress by depreciation topic

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Frequently Asked Questions

When does the mid-quarter convention apply instead of half-year?

Mid-quarter convention applies when more than 40% of depreciable property (by basis) is placed in service in the last quarter of the tax year. It's designed to prevent taxpayers from bunching purchases in the fourth quarter to get a full half-year of depreciation.

When does the mid-month convention apply?

Mid-month convention applies to real property (residential rental and nonresidential real property). Property is treated as placed in service at the midpoint of the month, so a building placed in service on January 1 gets 11.5 months of depreciation that year.

What are listed property rules?

Listed property includes vehicles, computers, and other property susceptible to personal use. If business use is 50% or less, you must use ADS (straight-line) and the property doesn't qualify for Section 179 or bonus depreciation. If business use later drops below 50%, there's depreciation recapture.

How is gain or loss calculated when disposing of MACRS property?

Gain or loss equals amount realized minus adjusted basis (original cost minus accumulated depreciation). Section 1245 gain (ordinary income) applies to the extent of prior depreciation for personal property. Section 1250 applies to real property but unrecaptured Section 1250 gain is typically taxed at 25%.

Related Practice Areas

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