@Retire6060 wrote:
....If the FMV is determined to be $250,000 at the time of conversion, would the $35,000 in improvements be additive to the FMV tax basis if I sell in the future?
For the purposes of your depreciable basis, you would then use the FMV at the time of conversion inclusive of the cost of all previous improvements (unless your adjusted basis at the time of conversion is less than the FMV).
Your cost basis would, basically, be your purchase price plus the cost of any improvements. However, your (adjusted) basis would be reduced by the total of depreciation deductions that were taken (or should have been taken).
