@Montrose8889 wrote:
Now when selling the property and calculating basis for gain/loss, is it appropriate to go back to the original 2008 purchase price, or to stick with the basis that I used for the business (from 2013-2019) and the associated depreciation?
For rental real estate that was converted to rental use, you would use the lesser of your adjusted basis or the fair market value on the date of conversion if the sale results in a loss.
On the other hand, if the property is sold at a gain (which is most likely after depreciation deductions are factored in), then you would use your adjusted basis on the date of the sale to calculate the gain.
To put it differently, if the sales price is higher than your adjusted basis on the date of the sale, then the fair market value on the date of conversion is irrelevant.
