Lindale Rentals places an apartment building in service on November 22, 2014. The building's depreciable basis is $3,300,000. What is Lindale Homes' 2014 depreciation deduction on the property?

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The apartment building is residential rental property, which is depreciated over 27.5 years using the straight-line method and the mid-month convention. For 2014, only 1.5 months of depreciation is allowed (November 22 to December 31). The annual depreciation is $3,300,000 / 27.5 = $120,000. For 1.5 months, the depreciation is $120,000 * (1.5/12) = $15,015.

Lindale Rentals Places an Apartment Building in Service on November