Hello All,

There are main 3 conventions : 1) Based on months held, 2) Half Year Convention, and 3) Full year convention

Is it ok to pick any convention for depreciation calculation or there are some rules pertaining to each asset?

For instance : When there is an asset of start up cost, the asset will be amortized over a period of 5 years and amortization should be calculated based on monthly convention.

Real Estate can be based on monthly convention.

How about other assets like equipment, F/F : I have taken half yearly convention many times.

But I would like to know the rules laid out by IRS? Can someone guide me / send me the link to read the rules?

Thank you in advance.

Sammie