T/F. If personal-use property is converted to trade or business use, the basis for depreciation is...

T/F. If personal-use property is converted to trade or business use, the basis for depreciation is the lesser of adjusted basis or FMV on the date of conversion.

Expert Solution

Adjusted basis is the net cost of an asset after adjustment of tax related items and reduced by depreciation deduction. Fair market value is the price at which an asset would sell in an open market.

ekkarill92 answered 6 months ago

what is the basics for depreciation of property converted from personal use to business use

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