When the use of a capital property is changed from personal use to business use, there is a deemed disposition/reacquisition of that property. If the original cost of the property is less than the fair market value of the property at the time of the change in use, the cost of the property for UCC purposes is limited to its cost, plus one-half of the difference between the cost and fair market value. What is the reason for this limitation?

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The Answer of When the use of a capital property is changed from personal use to business use, there is a deemed disposition/reacquisition of that property. If the original cost of the property is less than the fair market value of the property at the time of the change in use, the cost of the property for UCC purposes is limited to its cost, plus one-half of the difference between the cost and fair market value. What is the reason for this limitation?

When the Use of a Capital Property Is Changed from Personal