Terms Beginning With 'h'

Half-Year Convention for Depreciation

  • January 02, 2020
  • Team Kalkine

The half-year convention for depreciation refers to a depreciation plan applied to evaluate depreciation for tax purposes in which only half of the full-year depreciation is permitted in the 1st year while the outstanding half-year of depreciation is deducted from earnings in the final year of depreciation. This assumes that a fixed asset or property have been in service for one-half of its first year, regardless of the actual purchase date.

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