In order to be recognized and deducted on a tax return,a loss must first be realized.

Name: In order to be recognized and deducted on a tax return,a loss must first be realized.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. A loss must be recognized, meaning it must be a real loss from the sale or disposal of an asset, in order to be deducted on a tax return. Unrealized losses, or losses on paper, cannot be deducted.

In Order to Be Recognized and Deducted on a Tax