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Investors & landlords
I disagree with the others. You need to restart the depreciation over 27.5 years, using the lower of the current Adjusted Basis and the Fair Market Value.
Regulation §1.168(i)-4(c) says that conversion to personal use is treated as a disposition (but not gain or loss is calculated). That means when you convert it back to rental use, it is treated like a new property.
February 19, 2020
9:12 AM