Solved: Home&Business. 1st yr. using 30% of home for bus. TT says use lesser of fair market value or original basis (do improvements increase basis?)
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Home&Business. 1st yr. using 30% of home for bus. TT says use lesser of fair market value or original basis (do improvements increase basis?)

Orig. purchase $111,000 1991. Capital Improvements of $200,000 as of 12/31/15. Current market value $359,000.  is basis $111,000 or $311,000?
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Home&Business. 1st yr. using 30% of home for bus. TT says use lesser of fair market value or original basis (do improvements increase basis?)

The basis is $311,000 - the original purchase price plus the cost of the improvements.

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Home&Business. 1st yr. using 30% of home for bus. TT says use lesser of fair market value or original basis (do improvements increase basis?)

The basis is $311,000 - the original purchase price plus the cost of the improvements.

View solution in original post

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