If property that has been converted from personal use to business use has appreciated in value, its basis for gain will be the same as the basis for loss.

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According to the IRS, if property has been converted from personal use to business use and has appreciated in value, the basis for gain will generally be the same as the basis for loss. This means that the property's current fair market value is not taken into account when calculating the gain or loss on the property. Instead, the original cost or other basis of the property is used to determine the gain or loss.

If Property That Has Been Converted from Personal Use to Business