8) Claire's mother, Lynn, died on June 5, 2013, leaving Claire her entire estate. Included in the estate was Lynn's residence (205 South 17th street, Lincoln, NE 68508). Lynn's basis in the residence was $45,000, and the fair market value of the residence on June 5, 2013 was $120,000. The property was distributed from the estate to Claire on January 1, 2014. From January 1, 2014, Phillip and Claire rented the house to the same tenant. (The house is a single- family residence.) Phillip and Claire have been managing the rental property themselves. In 2021, the Humphreys collected rent of $1,100 a month, and they incurred the following expenses related to the rental: Property insurance Property taxes Maintenance Depreciation (to be computed) $950 1,900 750 ? They have depreciated the house using MACRS rules and convention applicable to residential rental real property. To compute depreciation on the house, the Humphreys allocated $30,000 of the property's basis to the land. In 2021, Humphreys did not make any payments that require them to file Form 1099.