@Carl wrote:
I was under the impression I take the FMV when it was converted to a rental for the sale on this years taxes.
No. Your cost basis is the *lessor* of
a. what you actually paid for it (including what you paid for improvements) or:
b. The FMV of the property on the date you converted it to a rental.
No, the above-quoted answer is not correct.
Again, the basis for the purposes of the sale is the adjusted basis of the property.
The lesser of the cost basis (plus improvements) or the FMV of the property on the date of conversion is used strictly for the purposes of determining the basis for depreciation.
