I'm just looking at the root question in the first post of this thread.
When I converted my primary residence to a rental property, my cost basis for the home will be the fair market value at the time of conversion?
Doubtful, but possible, IRS Publication 527 at https://www.irs.gov/pub/irs-pdf/p527.pdf#en_US_2020_publink1000219151 page 15 column three, section titled, Basis of Property Changed to Rental Use clearly states:
The basis for depreciation is the lesser of
:•The fair market value of the property on the date you changed it to rental use; or
•Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis.
Nowadays it is becoming more common for the adjusted basis to be the lesser value.
