When Kelvin sent his daughter to college, he purchased a house near campus for $95,000 Empty lots in the area sold for approximately $10,000 at the time. After she graduated, he decided to keep the house for use as a rental. The fair market value at the time of the conversion was $160,000 and the price of the land had risen to $20,000. The basis for depreciation of the house is _____. $140,000 $105,000 $95,000 $85,000 Mart for follow up Neelam died, leaving her estate to her cousin, Mary. At the time of her death, Neelam owned a diamond ring that was originally purchased by her grandmother for $5,000. On her grandmother's death, the ring had passed to Neelam's father. At the time of her grandmother's death, the ring was worth $10,000. Her father then spent $700 to have the ring remounted. It was valued at $13,000 at the time of her father's death At the time of Neelam's death, the ring was worth $18,000. Mary's basis in the ring is _____. $18,000 $13,000 $10, 700 $5,000 Mark for follow up If the Tax Professional does not establish basis for an asset that is sold, the _____. Basis will be adjusted to reflect the fair market value at the time of the sale. Basis will be assumed to be one-half of the sale price. IRS will assume the basis is $0 and consider all of the proceeds to be gain IRS will assume the basis to be one-fourth of the sales price Mark for fellow up Which of these would NOT increase basis? Casualty restoration bringing the property to pre-casualty condition