personal property 1245

[TAX4US]

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.

[ATSMAN]

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.

[AZUKHiker]

Agree With ATSMAN

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.