The "in-service" date

[Melanie Baldridge]

When thinking about depreciation it's not about when you buy the property, it is when you "put it into service."

When you buy determines your short/long term capital gains.

The "in-service" date = The point in time when you can start taking depreciation from.

[Michael Plaks]

Quote from @Gregory Wilson:

Quote from @Michael Plaks:

Quote from @Gregory Wilson:

I think you misunderstood. The offer to lease was "as is" and which is by definition in a state of readiness. Frankly, this thread should help the CPA's in the crowd understand why taxpayers often complain that their tax preparers are not aggressive enough. For my part I see this as okay. I can see a IRS Publication based approach to tax preparation. 

The offer to lease should be genuine. If it's under construction, it cannot be leased. If you want to call it "aggressive", be my guest.

A property under construction certainly can be leased. Where did you get that idea?

Not interested in arguing the obvious further. The Regs language is clear:

...Property is first placed in service when first placed in a condition or state of readiness and availability for a specifically assigned function,..

If you want to twist its meaning, go ahead, it's not my game.

PS. You may also want to review 2013 TC cases of a) Brown and b) Mears.