Question 41 of 75 Zack purchased a rental house for $250,000. He put down $50,000 cash and took out a mortgage for the balance of $200,000. At closing, he paid $4,000 in points, $3,500 for transfer taxes and legal fees, and $8,500 for delinquent proper taxes left unpaid by the seller. What is Zack's basis in the rental house? Question 42 of 75. The safe harbor election allows taxpayers to elect to expense improvements if the total amount paid during the year eligible property does not exceed the lesser of the following: -2% of the unadjusted basis of the eligible building property $10,000 Amounts eligible for this election include all of the following EXCEPT: O Utilities O Repairs O Maintenance O Improvements