fte basis for nonbusiness property changed to business use is the greater of the adjusted basis of the property or its fair market value on the date it is converted to business use.

Question

Quizplus · Accepted Answer

When nonbusiness property is converted to business use, the basis for determining gains is the adjusted basis, but the basis for determining loss or depreciation is the lesser of the adjusted basis of the property or its fair market value at the date of conversion.

Fte Basis for Nonbusiness Property Changed to Business Use Is