Rental property depreciation

[Broncobear]

Can I depreciate rental property owned by me and spouse and leased to a LLC that is multi member?

[Critter-3 · Accepted solution]

When you rent a property you MUST take depreciation on the Sch E no matter who you rent to as long as it is at a fair market rate. 

[Carl]

With very few exceptions, (of which none that I am aware of apply to your situation) you don't have a choice on this, and are required to depreciate the property. If you don't depreciate the property, then in the year you sell the property you are still required to reduce your cost basis by the depreciation you "should* have taken. So either way, you will pay taxes on that depreciation taken, or should have taken, in the tax year you sell the property.