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T paid $160,000 to have a home built on a lot he purchased for $25,000. Additionally, he made permanent improvements to the house of $20,000.

T paid $160,000 to have a home built on a lot he purchased for $25,000. Additionally, he made permanent improvements to the house of $20,000. At the time the house was put into service, the property had a FMV of $180,000 with $15,000 allocated to the land.

What is the basis in the property for calculating the depreciation on the rental property?

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