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Question - This year, Ellen Smith converted her principal residence to rental property. She originally purchased the home 8 years ago for $425,000. The home was appraised at $356,250 just before she placed it on the rental market. Assuming that $12,500 of the tax basis of the home is attributable to the land on which the home is located, if the home was converted to rental property on June 20, how much depreciation expense can Ellen claim on her current year return?
1) $8,125
2) $6,771
3) $4,774
4) $5,729
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