I will not disagree since the owner is using it as his personal residence.  But that could be - for now.  I had two clients who bought homes.  One, a scientist who regularly had other 1099-scientists come to their location for one or two night stays.  After spending over $100k in hotel costs he found it cheaper to purchase a residence.  Yes, that was a depreciated business asset.  The other was a small airline who also spent tons on housing crew so they purchased a residence.  So on the surface Bob, I agree with you.  But the situation as it is now could be (doubtful, maybe, who knows) be temporary and the real reason will come out.