Hi,
I own a property in Europe that I bought in 2018 and I have been renting since then. Since the rate Euro-Dollar changes every year, I have been changing the cost basis and the cost of land every year ,adjusting them by the exchange rate. I believe these values are used for the depreciation calculation.
So for example if I bought the property for 100,000 eur and the exchange rate that year was 1.1. I inputted 110,000 usd. But if the next year the rate was 1.2, I changed the cost basis to 120,000 usd.
Is this the right way to do it, or should I keep it constant for the exchange rate of the year I bough it?
Thanks.
