Thank you for your reply.  It's complicated because the property is owned by a Trust. Trustee doesn't make any cash income from the rental b/c expenses exceed income (whole other story - emotional attachment to property).  He doesn't want to deal with renting in the winter.  If we treat as full year rental, we end up with cash losses on the rental and additional losses by taking full year depreciation.  There is investment income so that gets passed out to the beneficiaries and then depreciation will pass out to the beneficiaries according to TAI creating passive losses that they may never be able to take.  The Trustee is thinking about eventually selling the property within the Trust and investing the proceeds so the Trust will end up with a large gain and no passive losses to offset at the Trust level.  So taking depreciation is not advantageous in this situation.    My other option is to maintain a depreciation reserve and keep depreciation in the Trust (allowed per Trust doc) - but there isn't enough cash to cover the reserve.   I am trying to figure out what I can take for depreciation (if any) if he only reports the property available for three months - is it three months of depreciation or none since he puts it in and out of service in the same year?