Final answer:
Wanda can offset the gain from one asset with the loss from another by selling them in the same tax year, potentially lowering her tax liability. However, the best tax strategy depends on her anticipated income and tax bracket for each year, and she should seek professional advice.
Step-by-step explanation:
If Wanda sells both personal use assets in the same tax year, with one asset appreciating by $20,000 and another declining by $17,000, she can indeed offset the gain on the first asset with the loss of the second. This strategy helps reduce the total taxable gain, which may result in a lower tax liability depending on Wanda's tax situation.
Regarding a potentially better tax result by selling the assets in different tax years, it depends on Wanda's income for each year and the tax rates applied. If she expects to be in a higher tax bracket in the year she would realize the gain, then offsetting it with the loss would be beneficial. However, if she anticipates being in a lower tax bracket in another year, it might be more advantageous to realize the loss in that year instead to minimize the overall tax impact.
Keep in mind that tax laws can be complex, and Wanda should consult with a tax professional to examine her specific situation and plan the best strategy for selling her assets.