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U TAH L E AG UE OF CIT IES AND T OW NS APRIL 68, 2016 DIXIE CENTER S T. G E O R G E, U TA H Expect the unexpected WHAT'S MIDYEAR CONVENTION NEXT? 2016 U TAH L E AG UE OF CIT IES AND T OWNS 2016 MIDYEAR

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What is midyear convention?

Midyear convention is a method used to calculate depreciation for assets based on the assumption that they are incurred halfway through the year.

Who is required to file midyear convention?

Any individual or business that owns depreciable assets and wants to calculate depreciation using the midyear convention method is required to file.

How to fill out midyear convention?

To fill out midyear convention, you need to calculate the depreciation expense for each asset by dividing the cost of the asset by its useful life and then multiplying it by 1.5 if the midyear convention is used.

What is the purpose of midyear convention?

The purpose of midyear convention is to provide a depreciation method that reflects the fact that assets are typically acquired throughout the year, not just at the beginning or end of the year.

What information must be reported on midyear convention?

On midyear convention, you must report the cost of the asset, its useful life, the depreciation method used, and the depreciation expense for the current year.