A painting that is not of investment quality is acquired by an individual for use in...
A painting that is not of investment quality is acquired by an individual for use in his home. It is later sold at a loss of $45. Which of the following statements is correct?
a.The loss on the painting is not deductible.
b.The loss on the painting is a deductible capital loss.
c.The painting was an ordinary asset.
d.The painting was a capital asset.
e."The painting was a capital asset" and "The loss on the painting is not deductible".
Homework Answers
Option 'E' is correct
The painting is a capital Asset, But it is also a personal use activity asset sold at a loss. .
The Loss on painting is not deductible.
So, the answer is 'The painting was a capital Asset' and 'The Loss on the painting is not deductible'.
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