Does depreciation on a rental property have to be taken each consecutive year or can this be skipped for years when the property is not rented?

[hsingh1969]

IRS publication 527 states that the depreciation of a rental property stops when it is taken out of service. If the property is rented intermittently can this depreciation be skipped during the years when the property is not rented?

[PatriciaV · Accepted solution]

Yes. In fact, you cannot take depreciation if the property is not available to be rented.

The accumulated depreciation over the life of the Rental Property does not go away. And you will need good records for the depreciation expense claimed during the years it was available to be rented.

If you wish to retain the information for the property on your tax return, do not check the box for "not rented all year." Otherwise, the program will delete the rental property and all historical information. You would then need to re-enter the property the next year it is available to be rented.