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Deductions & credits
Yes. You can depreciate the solar system, however you must use the lesser of cost or fair market value (FMV) on the date it was converted to a rental property. Further you must reduce that figure by the credit you received in 2014.
Yes. You can depreciate the home on the date of conversion as well. The same rule applies, the cost basis for depreciation is the lesser of actual cost or FMV on the date converted to rental property. Keep in mind the land portion of the cost must be determined and is always an appreciable asset. You can make determination using the city or county tax assessments for building(s) and land. Once you find the percentage for land, you will have the cost of both the rental home and land.
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‎January 31, 2023
7:49 AM