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Please help me calculate the depreciation for the house using MARCS rules. Please help me answer this within 30 minutes. Thank you so much 5.
Please help me calculate the depreciation for the house using MARCS rules.
Please help me answer this within 30 minutes. Thank you so much
5. Charlotte's father, Patrick died on August 20, 2017, leaving Charlotte his entire estate. Included in the estate was Patrick's house (115 Second Street, El Paso, TX 79901). Patrick's basis in the residence was $65,000. The fair market value of the residence on August 20, 2017 was $169,000. Charlotte has held the property as a rental property since she received it and has managed it herself, however she is not a real estate professional. To compute the depreciation on the house, Charlotte has allocated $15,000 of the property's basis to the land and the remaining amount to the house. She has depreciated the house using the MACRS rules and conventions applicable to residential real estate. Charlotte has collected rental income of $1,100 per month all year for 2019. The house was occupied during the entire year. She did not pay anyone that would require form 1099 for work related to this house. Income from this property is NOT Qualified Business Income. She incurred the following expenses related to the rental house during the year: Property Insurance Property Taxes Maintenance Depreciation $2,250 $3,150 $1,950 To be computedStep by Step Solution
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