When property is converted from personal to business use, the basis for loss and for depreciation can be no greater than the fair market value at the time of the conversion.

Question

Quizplus · Accepted Answer

When property is converted from personal to business use, the basis for loss and depreciation cannot exceed the fair market value at the time of the conversion. This is because the property's original basis was established for personal use and may not accurately reflect its value for business purposes.

When Property Is Converted from Personal to Business Use, the Basis