Only the building is depreciable
so the depreciable portion is $753,000 less $134,000 land, for a net of $619,000
The MACRS rules (Modified Accelerated Cost Recovery System ) provide a 39-year life, straight-line depreciation, and a "mid-month" acquisition convention that treats the property as acquired in the middle of the month, regardless of the actual date of acquisition.
Therefore, the August 1, Year 2016, service date provides a half-month's depreciation for August, plus a full month for September through December, for a total of 4.5 months for Year 2016. $619,000 /39 years) × (4.5/12) = $5,952.
