Question 63 of 75. When Marcus daughter want to college, he purchased a property nour campus for $95,000 for her. At the time, the property tax assessment allocated 10% of the property value to the land. After his daughter graduated, Marcus decided to keep the house for use as a rental The tal market value of the time of the conversion was $140,000, but now the tax assessment allocated 35% to land value. The basis for depreciation of the house is $85,500 $91,000 $95.000 $140,000 Mark for follow up Question 64 of 75. A taxpayer may want to use straight-line depreciation instead of the modified accelerated cost recovery system of depreciation for all of the following reasons EXCEPT: The taxpayer has little or no tax liability in the year the property is placed in service. A large increase in future income is anticipated. A largor depreciation deduction is desired in the first years of depreciation. The item will likely be used less than 50% for business in future years, Mark for follow up Question 65 of 75. Which of the following statements about basis is TRUE? Bonus/special depreciation decreases basis. Basis is not impacted by casualty losses, Basis is not impacted by the Section 179 deduction Depreciation can decrease basis below zero