Tanya owns a house that she has been living in for eight years. She purchased the house for $240,000 and the FMV today is $205,000. She is moving into her friend's house and has decided to convert her residence to rental property. Assume 40% of the property's value is allocated to land. Read the requirements. Requirement a. What is the basis of the house for depreciation? The basis of the house for depreciation is $123,000 Requirement b. If she claims depreciation of $12,300 and sells the property six years later for $310,000 (40% 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.) Amount realized Less: Adjusted basis Realized gain (loss) House Requirements Land a. What is the basis of the house for depreciation? b. If she claims depreciation of $12,300 and sells the property six years later for $310,000 (40% allocated to land), determine the gain on the sale of the building and gain on the sale of the land. c. How much of the gain is due to depreciation? d. If the FMV is $270,000 when she converts the house to rental property instead of $205,000, what is the basis of the house for depreciation? Print Done -