Depreciation of building rented on property

[photoman]

I have a client that has a metal pole building on his property. His home is located on this same property. He is writing off the home loan 1098 interest on sch A. He rents out the metal building to someone. he has in the past before coming to me just put the rental income and expenses on schE. Not depreciating the building. Does it seem ok to just leave it the same or should he depreciate . Is he required to depreciate. This is a residental loan . Not commercial.

[JG EA]

I have a client that has a metal pole building on his property. His home is located on this same property. He is writing off the home loan 1098 interest on sch A. He rents out the metal building to someone. he has in the past before coming to me just put the rental income and expenses on schE. Not depreciating the building. Does it seem ok to just leave it the same or should he depreciate . Is he required to depreciate. This is a residental loan . Not commercial.

He is not required to take depreciation, but he is required to figure it into the basis when sold. Line from 4797 form:
"Depreciation
allowed or
allowable since
acquisition"

[taxea]

He is foolish not to take the depreciation because as stated above he will have to claim it if he sells.