Question
A taxpayer in the 25% bracket before considering the sale, sold for a gain of $10,000 a residential rental building,purchased and put into service in
A taxpayer in the 25% bracket before considering the sale, sold for a gain of $10,000 a residential rental building,purchased and put into service in March 2010. (The sale of land is not included in this question) No other residential real property was sold in this tax year. The depreciation taken or allowed is $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%(or 33% if the gain pushes the taxpayer into a higher tax bracket) c) $10,000 gain taxed at a maximum of 25% d) $15,635 gain taxed at a maximum of 25%
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