Richard's uncle, Robert died on June 30, 2016, leaving Richard his entire estate. Included in the estate was Robert's house (670 Hamilton Rd, El Paso, TX 79901). Robert's basis in the residence was $166,000. The fair market value of the residence on the date of his death in 2016 was $297,000. Richard has used the property as a rental property since he received it and has managed it himself, however he is not a real estate professional. To compute the depreciation on the house, Richard has allocated $26,000 of the property's basis to the land and the remaining amount to the house. He has depreciated the house using the MACRS rules and conventions applicable to residential real estate. Richard collected $27,000 rent in 2021. The house was occupied during the entire year. He did not pay any contract labor that would require form 1099 for work related to this rental house. This property does not qualify for the Qualified Business Income Deduction. He incurred the following expenses related to the rental house during the year: Property Insurance Property Taxes Repairs Utilities $2,950 $4,200 $4,650 $1,718 Depreciation To be computed