calculating depreciation and amortization - form 4562

[lake...@yahoo.com]

Hello,

I have a llc that received no income in 2007, but expenses to fix up
the house. I inherited a tenant that lived in the house for one month
under my ownership and they didn't pay the rent. Do I need to
calculate depreciation and amortization based on this on form 4562?

[Paul Thomas, CPA]

<lake...@yahoo.com> wrote

Absolutely. Even though no rents were received, it was an active rental
activity, and depreciation and other expenses can be taken.

Remember though, that losses may be limited by basis and subject to the
passive activity loss rules.

--
Paul A. Thomas, CPA
Athens, Georgia