6. Which of the following statement is true?

A. Gains from selling ordinary assets that were held for 5 years are taxed at a discounted tax rate such as 0%, 15%, or 20%.

B. Losses on personal investment capital assets are ignored (e.g., not deductible).

C. Inventory from business is an example of capital asset.

D. Gains from wash sales are not taxed.

E. None of the above is correct.

7. Which of the following statement is true?

A. A taxpayer's at-risk amount in an activity is increased by the non-recourse debt for which the taxpayer is not responsible.

B. If the taxpayer has enough tax basis in a passive activity, the loss from the activity is fully deductible.

C. The correct order of the loss limitation rules is passive loss, tax basis, at-risk amount limits.

D. In general (i.e., unless the taxpayer is a professional real estate agent), an income or loss from rental real estate is considered passive income/loss.

E. None of the above is correct.