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Tally owns a house that she has been living in for eight years. She purchased the house for $ 2 4 5 comma 0 0
Tally owns a house that she has been living in for eight years. She purchased the house for $ comma and the fair market valueFMV today is $ comma She is moving into her friend's house and has decided to convert her residence to rental property. Assume of the property's value is allocated to land.
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Part
Requirement a What is the basis of the house for depreciation?
The basis of the house for depreciation is
Part
Requirement b If she claims depreciation of $ comma and sells the property six years later for $ comma 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
Requirement c How much of the gain is due to depreciation?
The gain due to depreciation is
Part
Requirement d If the FMV is $ comma when she converts the house to rental property instead of $ comma what is the basis of the house for depreciation?
The basis of the house for depreciation is
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