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On January 2, 2018, Todd Converts His House into a Rental

Question 144

Multiple Choice

On January 2, 2018, Todd converts his house into a rental property. Todd's basis in the house is $400,000 and its fair market value on the date of conversion is $376,000. What is Todd's basis for purposes of MACRS cost recovery?


A) $0? because it was converted from personal use, it cannot be depreciated.
B) $376,000.
C) $388,000.
D) $400,000.
E) None of the above.

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