On January $1,2023,$ Mr$.$ Bratton owns the following two rental properties:

Property A was acquired in $1987$ at a cost of $$120,000,$ of which $$20,000$ was paid for

the land and $$100,000$ for the building. The UCC of the building is $$68,000.$

Property B was purchased in $2015$ at a cost of $$220,000,$ of which $$30,000$ was paid

for the land and $$190,000$ for the building. The UCC of the building on January $1,2023,$

is $$174,200.$ On August $28,2023.$ Property B is sold for $$655,000.$ At this time, the

value of the land is $$130,000$ and the value of the building is $$525,000.$ The property

was used exclusively for residential purposes.

On December $1,2023,$ Mr$.$ Bratton purchases Property C at a cost of $$800,000,$ of which

$$250,000$ is paid for the land and the remaining $$550,000$ is paid for the building. The

property is used exclusively for residential purposes.

Gross rents on all of the properties totalled $$95,000$ for $2023,$ and the cost of maintenance,

municipal property tax, and mortgage interest totalled $$105,400.$ The source of the rental

income is not a business.