I have a condo purchased for my son which is rented to him at 60% of fair market value. I would rent it in the future at FMV if he ever moves out. I view this as a "not for profit rental" at this stage. I will enter all rental income on line 21 and will declare no expenses as I do not file Schedule A. My question regards is depreciation allowable for this type of property? I can't claim it but I am afraid it is classified as allowable and when I sell the property In the future I will have to pay the tax on the recapture of the allowable depreciation which I did not and cannot take. Can anyone clarify this situation? Thanks.
