@mgc6288 wrote:
Within this estimate there are some portions which can be expensed out or De Minimis however some will need to be depreciated over 27.5 years.
should I still "expense" the portions of unit 2 even though I haven't paid him anything?
If you are using the De Minimis election, that is not a depreciable asset. That means the expense is deducted when you pay it. In other words, you can't deduct that now because you haven't paid it.
As for the depreciation, that is tricky. It has been a year and he hasn't asked for payment? Personally, at this point I would be doubting if he will ask for payment.
If you think you eventually will pay for it, yes, you can claim depreciation now. However, if you are doubting that you will need to pay for it, personally, I don't think I would claim it now. If you decide not to claim it but it turns out that you eventually do pay, (a) if it was only one year, you can amend to claim it the prior year, or (b) if it was more than one year of tax returns, you can go to a tax professional to file Form 3115 to 'catch up' on the missed depreciation. But in my opinion it seems to be a decision that you need to make, rather than any clear-cut answer for what you 'should' do.
