Coy Asks:
Hi Gina,
I just read in your blog on this topic - my question is an easy one I think, and I'm thinking I already know the answer...
I purchased my "old" home in 1989 for about $96,000. I purchased a new home in April of 2008 and converted the old one to a rental.
In terms of depreciation, "...lesser of the actual cost Vs. fair market value..." I'm thinking that this means $96,000 rather than the (apx) $210,000 value on/about 5/1/2008?
Thank you
I just read in your blog on this topic - my question is an easy one I think, and I'm thinking I already know the answer...
I purchased my "old" home in 1989 for about $96,000. I purchased a new home in April of 2008 and converted the old one to a rental.
In terms of depreciation, "...lesser of the actual cost Vs. fair market value..." I'm thinking that this means $96,000 rather than the (apx) $210,000 value on/about 5/1/2008?
Thank you
My reply:
Coy,
Yes, you are correct, you will have to depreciate the $96,000 figure as that is the lessor of the two.
Best wishes,
Gina
http://GLGcpa.com
Yes, you are correct, you will have to depreciate the $96,000 figure as that is the lessor of the two.
Best wishes,
Gina
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