Thanks so much for responding to my question, I do have another related one; client owns another rental property that it was in such a bad shape that had to be demolished, client continue paying the mortgage on the demolished property, client wants to build a new one to continue renting it, since the property no longer exist, I am going to stop depreciation on it, how do I treat these payments since client already owns two personal properties. I would really appreciate your help on the subject.