Tally owns a house that she has been living in for eight years. She purchased the house for $ $245$ comma $000$ and the fair market value$($FMV$)$ today is $ $200$ comma $000.$ She is moving into her$$ friend's house and has decided to convert her residence to rental property. Assume $20\%$ of the$$ property's value is allocated to land.

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Part $1$

Requirement a$.$ What is the basis of the house for$$ depreciation?

The basis of the house for depreciation is

Part $2$

Requirement b$.$ If she claims depreciation of $ $15$ comma $000$ and sells the property six years later for $ $260$ comma $000(20\%$ allocated to$$ land$),$ determine the gain on the sale of the building and gain on the sale of the land.

First select the formula labels and then calculate the realized gain or loss. $($Use a parentheses or a minus sign to show a$$ loss.$)$

House

Land

Less:

Realized gain $($loss$)$

Part $3$

Requirement c$.$ How much of the gain is due to$$ depreciation?

The gain due to depreciation is

Part $4$

Requirement d$.$ If the FMV is $ $290$ comma $000$ when she converts the house to rental property instead of $ $200$ comma $000,$ what is the basis of the house for$$ depreciation?

The basis of the house for depreciation is