Personal Use Property

Personal Use Property

Property one does not use for a business or investment purpose. Examples of personal-use property include furniture, cars, family heirlooms, and so forth. Losses on personal use property are not generally tax deductible, though a loss on personal use real estate is generally an exception to this rule.
References in periodicals archive ?
Tax practitioners can also help each other by properly applying the personal use rules and documenting that the rules have been applied on all Schedules K-1 provided to owners of entities with personal use property. (13)
Historically, CPAs have dissuaded estate planning clients from funding family limited partnerships with personal use property, such as a primary or secondary residence.
For property transformed personal use property (i.e., a personal residence) to income-producing property (i.e., a rental unit), "the fair market value on the date of such conversion, if less than the adjusted basis of the property at that time, is the basis for computing depreciation."(16) Therefore, if a personal residence is converted to a rental unit when its FMV is below its adjusted basis, the FMV becomes the adjusted basis.
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