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TP had 1245 property converted to personal use. Has been personal use 2 tax years. TP sold property for a loss even using depreciated basis as a starting point. Do the conversion negate the loss upon the sale? Your imput please.
TP had 1245 property converted to personal use. Has been personal use 2 tax years. TP sold property for a loss even using depreciated basis as a starting point. Do the conversion negate the loss upon the sale? Your imput please.
It became personal property and therefore can not deduct any losses upon sale in my opinion.
Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR
On conversion to personal use you lose the tax benefits of any sale at a loss as it is a sale of a personal asset. Conversely if the sale was at a profit the prior business use would come in to play through the recovery of the depreciation.
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