depreciation being possibly incorrectly included on property rented < 1 year

[Carl]

Despite what Publication 946 says, I am convinced that depreciation *IS* allowable for real estate even if it is in service for less than a year.

I've never seen anything anywhere that says it's not allowed. All I've seen is that for property placed in service and taken out of service in the same tax year, depreciation is not required. The only "requirement" is that the class life of the asset be more than 12 months.

but what is the difference between a "property" and "real estate" in the context of your post?

Can't speak for context. But "real estate" is a narrower term that refers to just that; real estate composed of land and/or a structure. Where as property can include real estate in one's contextual use, as well as other types of business assets. For example, in a dental office there will be dental chairs. These things can costs upwards of $30K each. That could be referred to as depreciable business property. It obviously would not be real estate.

[AmeliesUncle]

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@hudson4351 wrote:

what is the difference between a "property" and "real estate" in the context of your post?

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Property is anything that you own, such as a refrigerator, a hammer, a house.  Real estate is land and generally items permanently attached to it (such as a house).

The Regulation I was referring that does not allow depreciation when "placed in service" and taken out of service is for Half-Year and Mid-Quarter conventions (which deals how items are depreciated the first and last year).  But real estate (in tax terms, Section 1250 property), does not use the Half-Year and Mid-Quarter convention (it uses the Mid-Month convention), so that Regulation I referred to does not apply to real estate.