Eileen-

blank 1: $0, $6182, $5128, $4359, $7273

blank 2: $1090, $1282, $1546, $1818, $0

Lei-

blank 1: $17949, $19091, $13462, $0, $25455

blank 2: $6364, $3366, $0, $4487, $4773

Amy-

blank 1: $8000, $5641, $0

blank 2: $2000, $1410, $0

S. Depreciation on real estate investments normal Depreciation is a tax deduction that recognizes an asset's decrease in value due to wear and tear and obsolescence. Remember the following real estate-related IRS Guidelines when answering the questions that follow regarding Eleen's and Let's real estate holdings Be sure to round each of your answers to the nearest whole dollar. IRS Depreciation Guidelines Type of property Number of years allowed Land Residential property 27.5 Nonresidential property 0.0 39.0 Eileen's Real Estate - Depreciation and Tax Consequences Elleen invested $200,000 in real estate ($170,000 for an apartment building and $30,000 for the land). The property enjoys full occupancy tenants Indude families, students, and seniors. Eileen can deduct in depreciation per year on her taxes. in taxes by Elleen's rental income in the first year of ownership was $24,000. By occupying the 25% income tax bracket, she will save taking the depreciation deduction. tei's Real Estate - Depreciation and Tax Consequences Lel invested $700,000 in real estate ($525,000 for an office building and $175,000 for itsland). The property enjoys full occupancy: tenants include an assortment of businesses. Lei can deduct in depreciation from her taxes. By the end of her first year of ownership, tel earned $105,000 in rental income. If she pays income taxes at the rate of 25%, then she will save in taxes by taking the depreciation deduction Amy's Real Estate - Depreciation and Tax Consequences Amy purchased 10 acres of land in the country for $220,000 as an investment. She Icases the property to a local nature club whose members use it for hiking and bird watching. As a result, Amy can deduct in depreciation from her taxes. If the gross annual rental income on Amy's property is $22,000 and she is taxed at the marginal rate of 25%, then she will be able to save on her taxes as a result of the depreciation deduction