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A taxpayer in the 25% bracket before considering the sale, sold for a game of $10,000...

A taxpayer in the 25% bracket before considering the sale, sold for a game of $10,000 of residential rental building purchased and put into service in March 2010 the sale of land is not included in the question no other residential real property was sold in this tax year the depreciation taken or allowed is $15,635 what is the a man and nature of the gain or loss
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Answer #1

For this situation depreciation recover manage will apply. As depreciation taken was $15635 so up to this point of confinement the pick up will be dealt with as ordinary income and will be taxed at 25% rate. For this situation pick up is $10000 so it is inside the depreciation sum so $10000 will be taxed at 25%.

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Hope this answer your query.

Feel free to comment if you need further assistance. J

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