However, if an asset is never paid for, then there is no cost basis for depreciation regardless of when it was placed in service.
Huh? Who said the asset was never paid for? It wasn't free.
begin depreciation deductions when you actually pay for the asset if you are a cash basis taxpayer.
Nope, that's not right. If the bill is due 5 years from the date placed in service and is not paid until it's due, you still depreciate on the cost of the asset on the date it's placed in service. It does not matter when you actually pay for it.
You start depreciation on the actually property itself on the date placed in service, even if your first mortgage payment isn't due until 90 days after it's placed in service. No different for any other asset.
