Question
A single taxpayer sold a residential rental building, in 2019, for a gain of $10,000. The building was purchased and placed in service in March
A single taxpayer sold a residential rental building, in 2019, for a gain of $10,000. 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 allowable was $15,635. What is the amount and nature of the gain or loss?
A- $10,000 gain taxed at a maximum of 15%.
B- $10,000 gain taxed at a maximum of 25%.
C-$10,000 gain taxed at a maximum of 28%.
D- $15,635 gain taxed at a maximum of 25%.
could be B or D as well which one is the best answer
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