If personal use property is converted to business use:
A)Gain is recognized on the date of conversion to the extent of the excess of the fair market value over the adjusted basis.
B)Loss is recognized on the date of conversion to the extent of the excess of the adjusted basis over the fair market value.
C)The basis for gain is the lower of the taxpayer's adjusted basis or the fair market value at the date of conversion.
D)The basis for loss is the taxpayer's adjusted basis on the date of conversion.
E)None of the above is correct.

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The Answer of If personal use property is converted to business use:
A)Gain is recognized on the date of conversion to the extent of the excess of the fair market value over the adjusted basis.
B)Loss is recognized on the date of conversion to the extent of the excess of the adjusted basis over the fair market value.
C)The basis for gain is the lower of the taxpayer's adjusted basis or the fair market value at the date of conversion.
D)The basis for loss is the taxpayer's adjusted basis on the date of conversion.
E)None of the above is correct.

If Personal Use Property Is Converted to Business Use