4. Hilda gives Irving a house worth $300,000 in which Hilda has a basis of $420,000. The house has been owned for 5 years.

a) If Irving rents the house out what will his basis be for depreciation?

b) Assume the property is not rented out and Irving sells the house after holding it for 9 months. The sales price is $160,000. What is Irvings gain or loss on the sale?

c) Is the gain or loss short term or long term?