Let's say I purchased a vacation home in 2006. The sale price was $110K, $10K of which was attributed to "land," and between the down payment, mortgage, and closing, I had to bring $120K to the table (round numbers to make it simple). Our family grew up spending our vacation time there all these years. Kids grew up and away.... [wipes tears]
In 2024, I started renting it out as a short-term rental through AirBnB and the like because now I spend my vacation time in my kids' basements so I can see my grandchildren. So, the condo was put "in service" in 2024. What do I put as my cost basis? Would it be my purchase price from 2006?
Many thanks for your expert replies.
