Скачать с ютуб Converting Personal Use to Business Use Property. Income Tax Course CPA Exam REG | EA Exam в хорошем качестве

Converting Personal Use to Business Use Property. Income Tax Course CPA Exam REG | EA Exam

In this video, I discuss converting personal use property to business use property. ✔️Start your free trial https://farhatlectures.com/ When you convert property from personal to business use, its tax basis—the value used for calculating gain or loss and for depreciation—can be affected. The tax basis for property converted to business use is the lesser of the following: Fair Market Value (FMV) at the Time of Conversion: This is the price at which the property would change hands between a willing buyer and a willing seller. It's important to determine the FMV at the time of conversion, as this value will be used in calculating any gain or loss if you later dispose of the property. Adjusted Basis of the Property: The adjusted basis is typically the original cost of the property plus any improvements, minus any depreciation (if applicable) or damages. For personal use property, the adjusted basis doesn't usually include depreciation since personal use property is not depreciated. When you convert your personal property to business use, you start depreciating the property based on its converted basis. The depreciation calculations will depend on the type of property, its expected useful life, and the depreciation method chosen. It's important to keep good records of the FMV at the time of conversion and the adjusted basis, as these figures will be critical for tax reporting. In some cases, an appraisal might be necessary to establish the FMV. If you sell the converted property, the basis for calculating the gain or loss on the sale will be its basis at the time of conversion, adjusted for any depreciation taken during the period of business use. It's recommended to consult with a tax professional for guidance specific to your situation, as tax rules can be complex, and there might be special considerations based on your particular circumstances. #cpaexam #cpaexaminindia #accountingstudents