2Janine paid $550,000 for a beach-front condo in Charleston, SC. She does not own the land which is subject to ground rent of $48, 000 per year. A reasonable estimate of the residual value of this structure is $50,000. Janine bought this place on August 8, 2021 for the sole purpose of leasing it to others on an annual basis. Within days of the acquisition, the house was rented until the end of summer 2022.

a- What is Janines maximum 2021 cost recovery deduction?

b- Would you answer to part A. above change if the building was a boat sttorage warehouse (instead of a rental condo)? Give a reason for your response.