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jfkrunner
New Member

rental property basis

We purchased a townhome in 2006 for $440,000.  In 2017, we converted the home from personal to a rental property.  At that time, the property's value had gone down to $360,000.

 

What can we use as the cost basis related to depreciation; $440,000 or $360,000?

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Accepted Solutions
MinhT1
Expert Alumni

rental property basis

The basis used for depreciation of your rental home is the less of fair market value or adjusted basis on the date of conversion. In this case, it is $360,000.

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1 Reply
MinhT1
Expert Alumni

rental property basis

The basis used for depreciation of your rental home is the less of fair market value or adjusted basis on the date of conversion. In this case, it is $360,000.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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