A man may take depreciation for income tax purposes on all of the following EXCEPT:

Depreciation is a tax deduction that allows property owners to recover the cost of certain assets over time. However, it is essential to recognize that not all types of property qualify for depreciation.

Land held for future profit does not qualify for depreciation because land is considered a non-depreciable asset. Unlike buildings or improvements on the property, land does not wear out, become obsolete, or get used up over time. Hence, it maintains its value and is not subject to depreciation for tax purposes.

In contrast, the other choices listed represent properties or assets that are depreciable. A home rented to friends can be treated as residential rental property, which allows for depreciation. An apartment building is a commercial asset typically eligible for depreciation, as residential units are intended to generate income. A vacant duplex, despite not being currently occupied, is considered an investment property that can also be depreciated since it could be rented out.

Thus, the correct understanding is that while income-producing properties can often take depreciation, land itself is excluded from this benefit.