1) If you initially paid $300K and sell at $600K (without considering recapture) than you have a gain of $300K
2) If you have property conversion at $400K and sell at $600K that is a gain of $200K
(in my book that is an increase of $100K more ?)
For both 1 & 2 ... it is the rule ... you must take the lesser of when converting.
3 ) Secondly MACRS at 27.5 would be less with the smaller amount vs the new amount during converstion.
Correct ... as it should be ... as explained in my other post this is desireable.
4) and where do you see on Asset Entry Worksheet the opportunity to add both prices
line 4.enter total cost when asset was acquired ? so asset was acquired in 2015 at a LOW PRICe.
where do you see the FMV at conversion what line??? As you entered the rental you should have indicated it was CONVERTED then the question of the FMV and cost basis would have been addressed.
If you have these kinds of questions I highly recommend you either upgrade to LIVE or seek out local professional guidance to be educated in the ways of the Sch E ... or read the IRS Publication 527.
