1) A taxpayer sold a residential rental building for a gain of $15,000. The building was purchased and placed in service in March 2010. (The sale of land is not included in this question.) No other property was sold during the current tax year. Before considering the sale, the taxpayer was in the 22% bracket. The depreciation allowed or allowable was $10,635. What is the amount and nature of the gain or loss? $______ gain taxed at a maximum of ___%

a) $15,000; 15%.

b) $15,000; 28%. c) $15,000; 25%.

d) $10,635; 25%.

2) Patrick sustained a $52,480 NOL in 2018. HIs loss is reported on Form 1040, Schedule C. The first year to which Patrick carries his NOL is:

a) 2015.

b) 2016.

c) 2019.

d) Patrick must take the NOL in the current year only.

Explain Please.