The Basis of Personal Use Property Converted to Business Use

question 35

Multiple Choice

The basis of personal use property converted to business use is:

• A)Always the lower of its adjusted basis or fair market value on the date of conversion.
• B)Always its adjusted basis on the date of conversion.
• C)Always its fair market value on the date of conversion.
• D)Always the higher of its adjusted basis or fair market value on the date of conversion.
• E)None of these.