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nalin [4]
3 years ago
8

On July 1, 2019, Kim Wald sold an antique for $12,000 that she had bought for her personal use in 2017 at a cost of $15,000. In

her 2019 return, Kim should treat the sale of the antique as a transaction resulting in __________.a) A nondeductible loss.
b) Ordinary loss.
c) Short-term capital loss.
d) Long-term capital loss
Business
1 answer:
elena55 [62]3 years ago
7 0

Answer:

A) A nondeductible loss.

Explanation:

Since Kim bought the antique for personal use, then she cannot deduct any loss resulting form its sale.

In order to determine if the sale of an antique can generate a deductible loss, the most important factor is the use that the owner gave to the antique. E.g., if the owner bought the antique in order to sell it and generate a profit, but wasn't able to, then the loss resulting from a sale is deductible.

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