Sorry, I misunderstood why you were pointing out about the reduction of basis of the property upon a sale. When I first read what you said I thought you were saying there was an alternate way to report the loss that would not affect the basis of the property. As to the assets I expensed under the de minimus election, as I said earlier, I am already in the process of replacing them. Is there a way to postpone any recognition of tax on gain (if any) when the assets are replaced since there is a good possibility some of the replacements will cost more. I've already included the loss of use as rental income on my Schedule E.
