Thank you for your response. It is becoming a little tricky now. I read Publication 527 and found "If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant". My understanding is even if the house is not occupied by tenant, as long as it is a rental property, I can deduct depreciations and expenses. But in my case, even if I still have a tenant there, I cannot deduct 100% depreciations and expenses. This doesn't make sense. I know sometimes it subjects to IRS's interpretation, were there any cases on this kind of situation? Or is it because based on your experience, it is safer to not deductible 100%? Thank you!
