Problem $8-30($L$0.1,2)$

In $2020,$ Jose purchased a house for $$325,000($ $$300,000$ relates to the house; $$25,000$ relates to the land$).$ He used the house as his personal residence. In March $2023,$ when the fair market value of the house was $$400,000,$ he converted the house to rental property.

If required, round your answers to the nearest dollar.

Click here to access depreciation tables in the textbook.

a$.$ Jose's basis for cost recovery for the property is $

b$.$ Under MACRS, the cost recovery period for residential rental real estate is

$$ convention.

c$.$ The cost recovery for $2023$ is $

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If personal$-$use assets are converted to business $($or income$-$producing$)$ use, the basis for cost recovery and for loss must be determined at the time the property is converted.