If property is converted from personal-use property to business property,the depreciable cost basis is which of the following?

A) Cost of the asset.
B) FMV of the asset.
C) The cost of a new similar asset at the date of conversion.
D) The lower of the cost or FMV at the date of conversion.

Depreciable Cost Basis

The portion of the cost of an asset that can be deducted over time for tax purposes.

Personal-Use Property

Items owned for personal enjoyment or use, such as a residence or car, that typically do not qualify for tax deductions or depreciation.

FMV

Fair Market Value is an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.