Thanks so much for your response. I agree it is depreciable. Regarding a hobby business, there was no option in the interview or the forms for indicating such. I think the only election to be a hobby or not is when we decide whether to carry any loss or income over to the individualreturn. The LLC is entitled to deduct depreciation and interest up to the amount of the LLC revenue. If the LLC shows a loss, then and only then I believe, does the issue of hobby or business come into play and even then only if we deduct the loss in our individual return. If we choose not to deduct the LLC loss in our individual return, discretion becomes the better part of valor in that we avoid challenging IRS on the hobby issue.
I have tried with and without the listed property option with no results. So, I am still stuck with the question: why won't the software calculate depreciation for my boat? Why is the depreciable basis set to zero? I have not ruled out a coding error. There is always the overide option to manually input the basis and may resort to that.
