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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 991
Experience:  Certified Public Accountant
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How do you establish basis when converting a residential

Customer Question

how do you establish basis when converting a residential condo to a rental that I lived in for several years? Original purchase price was $145000 at the time of conversion the condo value had dropped to $86000. Is my basis the 145000 or 86000?
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: I don't think so. There were on improvements or other adjustment to basis that I know.
Submitted: 27 days ago.
Category: Tax
Expert:  Mark Taylor replied 27 days ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 27 days ago.

Your basis in the property would be your original purchase price. If you made any improvement to the property over the years you would add this to your basis.

Expert:  Mark Taylor replied 27 days ago.

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