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Investors & landlords
When you converted the property from personal use to rental, the basis for depreciation was lower of the adjusted basis or the FMV on the date of the conversion. If you didn't add improvements then, then you can't increase the basis now. You will be using now whatever basis you've been depreciating for the last 6 years. Note: the depreciation gets deducted from basis (recaptured) when figuring gain.
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‎April 13, 2019
2:33 PM