Daniel has purchased an 18-unit apartment building. If he reports his income on a cash basis, he can deduct all of the following on his next income tax return, except:

A: Loss of rental because of vacancies suffered by two units;
B: The cost of redecorating two vacant units;
C: Interest payments on the second trust deed;
D: Depreciation when the value of the property has increased.

Answer: A: Loss of rental because of vacancies suffered by two units;