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Investors & landlords
Not really, and the proper cost recovery allowance (expensing or capitalizing) would be the lesser of your cost or fair market value on the date of conversion.
With respect to, comparably inexpensive, items initially purchased for personal use, such as kitchenware, small appliances, and the like, the fair market value is almost certainly going to be far less than the original cost.
‎October 11, 2023
9:24 AM