Can someone explain if a non-producing NPRI can be depreciated for income tax purposes? Let’s say the following is true in this scenario:
Party “A” purchased a non-producing NPRI from Party “B” for $10,000 in the year 2010. Come 2010 tax time, Party “A” shows the NPRI as an asset. Can the asset be depreciated per real estate property rules even if its non-producing, or does there have to be production in order to claim a depletion allowance?