Judys mother, Sarah, died on July leaving Judy her entire estate. Included in the estate was Sarahs residence Oak Street, Cincinnati, OH Sarahs basis in the residence was $ The fair market value of the residence on July was $ The property was distributed to Judy on January The Vances have held the property as rental property and have managed it themselves. From until June they rented the house to the same tenant. The tenant was transferred to a branch office in California and moved out at the end of June. Since they did not want to bother finding a new tenant, Paul and Judy sold the house on June They received $ for the house and land $ for the land and $ for the house less a percent commission charged by the broker. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate, with only months of able to be deducted. To compute depreciation on the house, the Vances had allocated $ of the propertys basis to the land and $ to the house, for a basis to them on January of $ in total. The Vances collected rent of $ a month during the six months the house was occupied during the year. The Vances were not required to file any Forms for this rental activity. They incurred the following related expenses during the year:

Property Insurance:                       $

Property Taxes:                              $

Maintenance:                                 $

Depreciation: