@Carl wrote:
....I seriously doubt the FMV of the property would be less than the adjusted basis on the date of conversion....
You can have all the "serious doubts" you want, but your doubts are groundless since we have absolutely no idea where this property is located nor how much was spent on improvements in the interim period.
There are certain parts of the country where real estate prices have been essentially stagnant for years and, in some instances, have actually declined for any one of a number of reasons.
