Albert purchased a tract of land for $140,000 in 2010 when he heard that a new highway was going to be constructed through the property 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 2013 and the value of the land fell to $100,000.What is the amount of loss Albert can claim in 2013?
A)$40,000.
B)$60,000.
C)$80,000.
D)$100,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Albert cannot claim a loss because the loss is unrealized; he has not sold the property. The value decrease is not a deductible loss for tax purposes.

Albert Purchased a Tract of Land for $140,000 in 2010