In 2016, José purchased a house for $325,000 ($300,000 relates to thehouse; $25,000 relates to the land). He used the house as his personalresidence. In March 2019, when the fair market value of the house was $400,000, he converted the house to rental property. What is José’s cost recovery for 2019?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
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In 2016, José purchased a house for $325,000 ($300,000 relates to the
house; $25,000 relates to the land). He used the house as his personal
residence. In March 2019, when the fair market value of the house was $400,000, he converted the house to rental property. What is José’s cost recovery for 2019?

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