Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-George sells his personal use automobile at a loss of $4,300.
A)Long-term capital
B)Short-term capital
C)Collectible gain
D)Section 1231
E)Section 1245
F)Section 1250
G)Ordinary income/loss
H)Nontaxable/nondeductible

Question

Quizplus · Accepted Answer

The loss on the sale of a personal use automobile is considered a nondeductible personal loss, hence it does not qualify for capital loss treatment or any other specific tax treatment listed.

Classify the Gain or Loss on Each of George's Assets