Depreciable Doctrine

[Nashville]

The famous words depreciation "allowed or allowable" implies recapture of depreciation that would have been recovered under the "depreciable doctrine" even if no depreciation was actually reported.

Classic example is the taxpayer who would report a loss had the depreciation been reported, but otherwise would not have to file a return, therefore he doesn't file a return even though he was entitled to the depreciation on his property.

Question: Taxpayer files a return every year, but fails to report a Schedule E rental house because his daughter is living in it and doesn't pay rent. Thereby he foregos the depreciation to which he is otherwise entitled. Is this considered to be "depreciable" under the doctrine?

[JohnH]

With the daughter living in the house, I'd think the property is not available for rent. Consequently, there's no depreciation allowable during the time the daughter lives in the house.

[BOB W]

With the daughter living in the house, I'd think the property is not available for rent. Consequently, there's no depreciation allowable during the time the daughter lives in the house.

I agree.......................no recapture for period of non-rental use.