Depreciation Basis - Orig price or FMV at time converted to rental? I'm so confused. Which value do we use for rental depreciation? We lived in the home for 20 years then converted it to a rental 2013.
Fair market value at time converted to rental was about $550,000
-OR-
$92,270
Based on (things we have receipts for)
Orig purchase 1993 = $225,000
Land value 1993 $152,730
Net $72,270 structure value
+ Improvements = Remodeled kitchen 2011 $15,000 and Remodeled Bath 2013 $5000
72,270+15,000+5000 |