Claiming Depreciation

[msgaillard03]

There is a company that is using a building that they once owned to provide childcare services but that is now bank-owned due to non-payment. They have been claiming depreciation on that building. Please tell me the rules behind that being unallowable.

 

[kirby]

IRS has five tests that must be be met to claim depreciation.
The first is: it must be property you own.
Since property is now bank owned the company fails that test.