I was guessing I couldn't expense what wasn't already paid but depreciation starts at the time unit was placed into service which was January 2024.
I guess if he shows up out of the blue within the 5 year statutes of limitations then I will be required to pay him. I'll just hold his money until then.
What if I were to simply depreciate the entire unit 2 over 27.5 years with the assumption that he wants to be eventually paid but then he never shows up within the 5 years?
Do I stop the depreciation once it is determined that I will **not** be paying him or do I continue but then have to make some kind of adjustment later on?
I'm attempting to watch my six in wasting 5 years of waiting to see if he wants to be paid, then at the last minute demands payment and now I've postponed a very long depreciation cycle another 5 years.
