Which of the following expenditures are not deductible because they are personal in nature?
I.Legal costs to acquire a personal residence.
II.Losses resulting from the sale of personal residences.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following expenditures are not deductible because they are personal in nature?
I.Legal costs to acquire a personal residence.
II.Losses resulting from the sale of personal residences.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Both statements are correct because the IRS does not allow deductions for personal expenses, including legal costs related to acquiring a personal residence or losses from the sale of personal residences.

Which of the Following Expenditures Are Not Deductible Because They