Answered: Do you use the current market value to depreciate residential real estate after owner moves and decides to rent the property out? - Intuit Accountants Community

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Do you use the current market value to depreciate residential real estate after owner moves and decides to rent the property out?

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If and only if current market value is below the adjusted basis of the property.

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If and only if current market value is below the adjusted basis of the property.

In other words, you use the LOWER of (1) Adjusted Basis on the date of conversion or (2) the FMV on the date of conversion.