I am sole member of the LLC that owns the apartment I live in
That means the LLC, which is considered a disregarded entity by the IRS, files a SCH C as a physical part of your personal 1040 tax return. However, rental income is passive income and gets reported on SCH E as a physical part of your 1040 tax return. Under no circumstances and with no exceptions will you report anything concerning the rental property on SCH C. There are no exceptions. It gets reported on SCH E. Therefore, absolutely nothing concerning the rental gets reported on the SCH C. Not one penny.
By federal law you are required to depreciate the rental property on SCH E. Doesn't matter that it's "just a parking unit". If it's a bare peice of raw land that you collect rent for, that raw land isn't depreciated by itself anyway. But you'd list it in the asset section as rental real estate. Then enter the same exact cost basis in"cost of land" as you enter in the "cost" box. That will show the IRS that you are "in fact" claiming the asset. But since it's just raw land it's not depreciated.
Now if there's a structure on that land that a vehicle is parked under, you have no choice but to depreciate the value of the structure. It's really not up for discussion. The IRS says that if you don't depreciate your rental property, then in the tax year you sell or otherwise dispose of it, you are required to reduce your cost basis by the depreciation you "should" have taken, but didn't. This will most likely put you in a higher tax bracket, and that's basically your penalty for not having depreciated it as required.
What you may or may not do in the future has no bearing on what you're required to do today.
