Albert purchased a tract of land for $140,000 in 2016 when he heard that a new highway was going to be constructed through the p

Question

3 years ago

15

Albert purchased a tract of land for $140,000 in 2016 when he heard that a new highway was going to be constructed through the p

roperty and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2019 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2019?

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1 answer:

Darina [25.2K] · Answer 1 · 2022-03-13T18:30:56+03:00

Answer and Explanation:

Albert cannot claim any loss during 2019.

The sale of the property is necessary to claim the loss of depreciation on any type of movable or immovable property. In the following case, Albert is not selling his property due to which he cannot claim any loss, hence Albert's current year's loss claim will be zero.