Rita acquired a personal residence two years ago for $120,000. In the current year, she purchases another residence and attempts to sell her former residence. Due to depressed housing conditions in the town where she used to live, Rita is unable to sell the house. Her former residence is now being offered for sale at $100,000 (its current FMV according to real estate appraisal experts). Rita has decided to rent the house rather than “give it away.” She believes that renting the house on a permanent basis will permit her to write off the original $120,000 investment over its useful life and thus recoup her investment. What restrictions in the tax law may prevent her from accomplishing this objective? Explain.