Storage Units - Contract for Deed & Depreciation

[Rob Geringer]

Q: If you buy on contract for deed can you still depreciate a commercial asset?

Background: I'm in discussions to buy storage units w/ seller financing w/ very good opportunity to increase net cash flow. The Sellers are retiring and the common sense kind of people - they run the operations and let professionals handle taxes, bookeeping, legal, etc. They don't want cash - they want an installment sale for tax purposes and certainty in cash flow.

To that end, they've been advised to sell contract-for-deed for the ease of taking the property back should the need arise. I've been advised by my CPA that he doesn't think we can depreciate the asset if we don't hold the deed in our entity name. The Sellers' CPA says there shouldn't be an issue. In speaking to both, neither sounds 100% certain about their position.

Thoughts? What's your experience with this?