Question

The basis for gain and loss of personal use property converted to business use is the lower of the adjusted basis or the fair market value on the date of conversion.

a. True
b. False

Answer 1

The basis for gain and loss of personal use property converted to business use is the lower of the adjusted basis or the fair market value on the date of conversion.

Step-by-step explanation:

The statement that the basis for gain and loss of personal use property converted to business use is the lower of the adjusted basis or the fair market value on the date of conversion is True. When personal use property is converted to business use, the owner must determine the basis for tax purposes. The basis is generally the lower of the adjusted basis or the fair market value at the time of conversion.