The destruction of a capital asset by a casualty gives rise to a capital rather than ordinary loss.

Name: The destruction of a capital asset by a casualty gives rise to a capital rather than ordinary loss.
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Question

Quizplus · Accepted Answer

The destruction of a capital asset by a casualty typically results in an ordinary loss, not a capital loss, as it is treated as a loss from a sudden, unexpected event rather than a sale or exchange of the asset.

The Destruction of a Capital Asset by a Casualty Gives