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I would keep the receipts as you never know when or why you sold what the tax consequences will be on real estate. Any imporvement after you bought would add to your basis and general repairs would not. When converting, your basis to depreciate will be your original cost (plus improvements) or the Fair Market Value of the condo, which ever is less.

When you sell, your basis will be your original cost, plus improvements before and after conversion, less depreciation taken. It is immaterial that the depreciation is based on a fictional value that may have no relation to your cost basis, possibly due to a lower market value at time of conversion.

I suggest you read the various IRS Publicatins regading Basis in Property, and other factors. Go to and select Forms and Publications / Publications and select what you think appropriate from the list and read them on line. ed
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