This is the first year that I am renting a farm that I acquired in January of 2023. I am renting it for a fixed cash rent amount so it will get reported on Schedule E. The tenant farmed and irrigated the property in 2023 but I did not receive my annual rent check until January of 2024. On the property is a motor, well and pivot used for irrigation purposes. I am depreciating this farm equipment on my 2023 tax return since it was in service all of 2023. My question is, I am not benefiting from the depreciation in 2023 as there is no rental net income. Will this depreciation automatically carryover to 2024 to decrease the rental income received that I will pay taxes on?
