ACS41 Posted February 26, 2008 Report Share Posted February 26, 2008 My client has several rental properties he abandoned in 2007 that will be foreclosed in 2008. Do I depreciate the property in 2007? There were no renters in 2007. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 26, 2008 Report Share Posted February 26, 2008 The key is were they available for rent (advertising, etc)? taxbilly Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 26, 2008 Report Share Posted February 26, 2008 Was he attempting to rent them? Quote Link to comment Share on other sites More sharing options...
ACS41 Posted February 26, 2008 Author Report Share Posted February 26, 2008 Was he attempting to rent them? No. He pretty much gave up and is waiting for the bank to take it in 2008. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 26, 2008 Report Share Posted February 26, 2008 Then if he was not trying to rent them in 07, was he trying to sell them? I would not take depreciation on them in 07 if they were not held out for rent. But I never understand why someone would not at least attempt to rent them, and/or attempt to sell them, since he'd be better off to sell, even at a loss, than to have them show as repo-ed. Not being able to find a tenant is not the same thing as not trying to rent it. As long as he had a sign up, etc, he was trying to rent it. Quote Link to comment Share on other sites More sharing options...
OldJack Posted February 27, 2008 Report Share Posted February 27, 2008 Assets must continue to be depreciated, even if they are temporarily not being used. Depreciation continues until the asset is sold, retired, abandoned or otherwise disposed. P.Dougherty Co., 35 AFTR 669 (4th Cir. 1946): D.L. Hamby, TC Memo 1988-555 Quote Link to comment Share on other sites More sharing options...
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