depreciation on part of the building

Technical topics regarding tax preparation.
#1
JAD  
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LLC owns a building that was fully rented for many years. Now the LLC is only renting 15% of the building. I've been treating the other 85% as investment property. They are not interested in renting it. No personal use. They are just letting it sit while they decide whether they are going to sell the building. This has been the situation for a few years. The owners are distracted with another business.

If the building cost $1,000,000, do I create two assets in Lacerte for $850,000 and $150,000, allocate the accumulated depreciation, and continue depreciating the $150,000? Or do I have one asset for $1,000,000 that does not generate any current depreciation expense because accumulated depreciation is more than $150,000 (the depreciable basis of the asset after application of the business use %)?

Thanks.
 

#2
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The Land
 

#3
JAD  
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Thanks, Jeff. That took quite a while to get through, but so much less time than it would have taken to get even close to an understanding of the issue on my own. I got lucky - I've been using the "harsh method", which seems like the method with the most support.
 


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