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Michelle converted her personal residence to rental property in 2017. She purchased the property in 2013 for $110,000, of which $10,000 was allocable to the
Michelle converted her personal residence to rental property in 2017. She purchased the property in 2013 for $110,000, of which $10,000 was allocable to the land. Unfortunately, property values in her neighborhood have declined over the past few years. On the date of conversion, the fair market value of the property was $98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in the property is:
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