Solved

Fair Market value of an inherited rental property.

Forum|Forum|6 years ago
June 7, 2019
1 reply
0 views

Renting part of inherited property, confused about the Fair Market value

I Started renting rooms in 2017

The Turbo tax instruction (see below) "FMV at the time of the conversion" , in the case of inherited property isn't the FMV from the day the Decedent died? or the day I converted to rental?

And if partial rental the FMV (minus land) has to be prorated, correct?

* If you converted your home to a rental unit, the basis you can depreciate is the lesser of: (1) the cost in the property (PLUS the cost of any improvements or assessments MINUS any casualty losses you've claimed on the property); or (2) the fair market value (FMV) at the time of the conversion.

TurboTax Home & Biz Windows

Best answer by CathiM

The FMV at the conversion date will be different, of course, from your cost basis. You have to calculate your cost basis to see which is less. The lesser is the one you will use. They may not be much different if the FMV hasn't changed much.

To calculate your cost basis in the inherited property take the FMV the day the decendent died plus cost of improvements or assessments minus any casualty losses your claimed on the property. Then compare the two.

C

CathiMAnswer

The FMV at the conversion date will be different, of course, from your cost basis. You have to calculate your cost basis to see which is less. The lesser is the one you will use. They may not be much different if the FMV hasn't changed much.

To calculate your cost basis in the inherited property take the FMV the day the decendent died plus cost of improvements or assessments minus any casualty losses your claimed on the property. Then compare the two.