I know that I am supposed to use the lesser of the FMV on the date of conversion or the purchase price plus improvements.
FMV on date of conversion
290,000 - 2018 property tax assessor value
(65,000) - Land value
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225,000 - Improvement value
... so the FMV on date of conversion would be 225,000 because you can't include land value, right?
Purchase price plus improvements
205,000 - 2008 Purchase price
35,000 - Upgrades and improvements
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240,000 - Total value
... but for this method, how much do I deduct for the land value, is it going to be the land value from the 2018 tax assesment?
240,000 - Total value
(65,000) - Land value from 2018 tax assessor
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165,000 - Home value used for rental property depreciation
Is that right, can I only use 165,000 as the home vale for the depreciation? That feels awfully low :(
