The depreciation is linked to the Sch E building, these are all correct.

The depreciation is prorated to the beneficiary which in this case it's reported on the K-1, box 9 and since this year the taxpayer has all unallowed passive losses therefore no losses are reported on K-1.

The question remains if the depreciation expense is reported on K-1 and if not why the program gives a critical diagnostic.

All I need to know if K-1 is all blank, would this be right to have the depreciation on the K-1?