During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss.Presuming adequate income, how much of these losses may Kim claim?
A)$0.
B)$1,000.
C)$2,000.
D)$3,000.
E)None of these.

Question

Quizplus · Accepted Answer

Kim can claim the $1,000 loss from the stock investment as a capital loss and the $1,000 loss from the business auto as an ordinary loss, totaling $2,000. The loss on the pleasure yacht, a personal-use asset, is not deductible.

During the Year, Kim Sold the Following Assets: Business Auto