Anonymous
Not applicable

Investors & landlords

IRS rules say, when you convert personal use property to business use (this would be in 2018 when your daughter moved out), the value assigned to the property for depreciation purposes is:

The LESSER of...

the adjusted basis of the property,

or its fair market value
...on the date of conversion.

 

The adjusted basis of the property you purchased for personal use is generally what you originally paid for the property on the date of purchase.