Yes, you can depreciate it but you can't a section 179. You must also use as your depreciable amount the lower of Fair Market Value of Adjusted Basis on the conversion date.
What Property Qualifies?
To qualify for the section 179
deduction, your property must meet all the following requirements.
- It must be eligible property.
- It must be acquired for business use
- It must have been acquired by purchase.
- It must not be property described later
under What
Property Does Not Qualify .
Property Acquired for Business Use
To qualify for the section 179 deduction, your property must
have been acquired for use in your trade or business. Property you acquire only
for the production of income, such as investment property, rental property (if
renting property is not your trade or business), and property that produces
royalties, does not qualify
