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Ashley owned rental property that was deemed substandard by the City of Sacramento. She incurred $50,000 of depreciation expense related to that substandard rental property.

Ashley owned rental property that was deemed substandard by the City of Sacramento. She incurred $50,000 of depreciation expense related to that substandard rental property. How much of the $50,000 of depreciation expenses can she deduct on her Federal Income Tax Return, and California Income Tax Return? 

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