Problem $13-66(10.4)$

Surendra's personal residence originally cost $$340,000($ipnoring the value of the land$).$ After living in the hoove for five reark, he caprerts it to rental property. At the date of conversion, the fair market value of the house is $$320,000.$

a$.$ Sorendra's basis for loss for the rental property is $3$

b$.$ Surendra's basis for deprediation for the rental proserty is $1$ X$.$

C$.$ Surendra's basis for gain for the rental property is $4x.$

d$.$ Could Surendra have obtained better tax resuits if he had sold his personal residence for $5720,000$ and then purchased anocher house for $$320,000$ to hoid as rental peoperty?

$q,$

No$,$ since this is a persenal erve avset, this reelized luw is not recognired,