A painting is acquired by an individual for use in his home. The painting is not of investment quality. It is later sold at a loss of $45. Which of the following statements is correct?
A) The painting was a capital asset.
B) The loss on the painting is not deductible.
C) The loss on the painting is a deductible capital loss.
D) The painting was an ordinary asset.
E) a. and b.

Question

Quizplus · Accepted Answer

The painting is considered a capital asset because it is personal property, but the loss is not deductible because it was not held for investment purposes.

A Painting Is Acquired by an Individual for Use in His