Yes, zero days of personal use while a rental, converted the property, divided expenses, it all sounds good. For 2025, you will convert it back to rental property and pick up your assets again to continue depreciation. You would only adjust the cost basis if there had been a change to the basis.
- The basis being depreciated is the lower of fair market value (FMV) or cost basis plus improvements.
- You can double check your basis entry is correct with Publication 551 Basis of Assets - IRS.
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