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If Property That Has Been Converted from Personal Use to Business

question 248

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If property that has been converted from personal use to business use has appreciated in value, its basis for gain will be the same as the basis for loss.


Definitions:

Annual Return

The percentage of increase or decrease in an investment's value over a one-year period.

Present Value Factors

Present value factors are numerical values used to calculate the present value of a future amount of money or stream of cash flows given a specific interest rate.

Depreciation

The deliberate allocation of a physical asset's expenditure throughout its usable life.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

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