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Self employed
You have to use the lesser of your original cost or the fair market value of the property on the date of conversion to business use as the basis for depreciation.
It is almost a certainty that the tools would have a fair market value that is considerably less than what you paid for them, depending upon age and condition. In fact, the devaluation may be so extreme as to warrant a full write-off of each tool as an expense.
‎November 4, 2019
7:19 PM