Reflecting on Carl's post regarding Basis.
In 2013 we purchased a new home, converted the old home into Rental. 2013 Taxes I calculated BASIS for the Rental at Fair Market Value, as the 2013 purchase price plus CCs, plus the improvements was far greater than FMV. We bought near the end of the Inflated Housing Market in May 2006. So, that BASIS was for the rental business Depreciation calculations.
Now in 2019 we sold the home, from what I read my BASIS for the sale is based on the original 2006 price plus closing costs, plus capital improvements.
There appears to be two types of basis, one at conversion to Rental Prop. for depreciation calcs. and one for Business Property Sale for Capital Gains calculation. Am I correct? Thank you. SABrown
