In 2017, Jos purchased a house for $188,100. He used the house as his personal residence. In August 2020, when the fair market value of the house was $284,500, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. Jos's basis for cost recovery for the property is $ 188,100 b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it is subject to the mid-month convention. C. The cost recovery for 2020 is $ 5,415 X. Feedback Check My Work If personal-use assets are converted to business (or income-producing) use, the basis for cost recovery and for loss must be determined at the time the property is converted