commercial real estate

I have owned a commercial 5 unit building with offices and restaurant for 2 years and this year converted top floor to loft for my use when I am in town. How do I remove the loft from the commercial rental real estate asset? (23% of the asset). Do I manually adjust the basis and how do I do that? Thanks.

posted

To me ( and thinking that somewhere downstream , the loft may be rented out & definitely disposed off as part of the whole building/land ), the easiest is to add it as a new asset, leave it for personal use and hence not currently depreciated. This allows for future conversion ( if and when ).