Which depreciation convention allows real property owners to take half a month’s depreciation during acquisition and disposition?

The mid-month convention is the correct choice because it specifically applies to depreciating real property over a specified lifespan. Under this convention, when real property is acquired or disposed of, the depreciation calculation assumes that the property was placed in service or disposed of at the midpoint of the month. As a result, property owners are allowed to take half a month's depreciation for the month in which they acquire or dispose of the property, effectively recognizing that the property was in service for part of that month.

In contrast, the other conventions do not provide the same treatment for real property. The full month convention assumes that the property is in service for the entire month regardless of when during the month it was acquired, while the end month convention takes a similar approach but focuses on the end of the month. The quarterly convention, on the other hand, relates to property placed in service at the beginning of a quarter and allows depreciation only for full quarters. Thus, the mid-month convention stands out in allowing for a pro-rated amount of depreciation in the month of acquisition and disposal, which is vital for accurate tax reporting and depreciation calculations for real property.