The depreciation was originally associated with a Rental property and showed on Form 8825. Now we still have the improvement but it's no longer a rental property just more of an investment property.

qbteachmt

Level 15

There are reasons not to hold real property in an S corp, and especially Rental property. Now you have "investment" property in the S corp, which isn't even generating Income? Something you are not using, but holding, would not keep depreciating, if held as an investment (example: art work). Depreciation is in consideration as a value for tax expense (not capital gain/loss) for wear and tear over time as loss of value to that property.

This is all very confusing. Could you give more details?

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