For purposes of calculating depreciation,property converted from personal use to business use will take on a basis equal to the lower of its FMV or its adjusted basis on the date of the conversion.

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This is true according to IRS rules for calculating depreciation on converted property. The basis of the property is the lower of its fair market value or adjusted basis on the date of the conversion.

For Purposes of Calculating Depreciation,property Converted from Personal Use to Business