Calculate the depreciable basis on the day your properties were available for rent. Please read below t how to calculate your depreciable basis.
Per IRS Publication 527 :Figuring the basis. The basis for depreciation is the lesser of:
- The fair market value of the property on the date you changed it to rental use, or
- Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis.
- For other increases and decreases to basis, see chapter 2.
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