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URL:  http://boards.fool.com/is-fmv-only-used-when-it-is-less-than-the-30398294.aspx

Subject:  Re: Loss on rental house Date:  11/25/2012  1:44 PM
Author:  TMFPMarti Number:  116970 of 121436

Is FMV only used when it is less than the purchase price and upgrades?

Yes, and only when a personal-use property is being converted to rental. It stands to reason since losses on the sale of personal-use property aren't deductible, but losses on purely rental property are. Otherwise one could briefly convert to rental then sell and realize a tax loss largely incurred while it was a personal residence.

Phil
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