A taxpayer converts equipment purchased five years ago for $10,000 for personal use to business use. The fair market value (FMV) of the equipment at the date of conversion is $8,000. One year later, the business sells the equipment for $5,000 when the FMV is 56,000. What is the basis of the equipment at the date of conversion?

Answer rating: 100% (QA)

The basis of the equipment at the date of conversion is 10000 This is because the taxpayer purchased ... View the full answer