since you acquired it by purchase and apparently never used as your personal residence or for some other purpose where the value to use would be the lower of FMV or cost, FMV has nothing to do with the amount you use for depreciation purposes. You would use the $220.5 less the land value + the $40K for remodeling.
if I'm wrong and you did use it for your residence or other personal purposes. then you would use the lower of FMV or cost on the date it became a rental property in July 2019
