Problem
Samson and Delilah did not the sell the home they purchased on January 1, 25 years ago, when they were first married. They converted it to a rental home 10 years ago. When they completed the conversion, the home had a fair market value of $85,000 while they originally paid $40,000 on the home 25 years ago.
The land had a $15,000 value 25 years ago and has a fair market value at the time of conversion of $28,000 today. The house is located at 812 E. Lovely Lane, Kearney, NE 68847.
During the current year, Samson and Delilah received $850 a month for each of the twelve months this year in rental income from the tenants and paid the following expenses:
Association dues $400
Insurance $130
Mortgage interest $900
Real estate taxes $1,100
Repairs $320
Utilities $1,440
Depreciation on home ?
How much Depreciation on the rental Property?