Final answer:
Capital losses from personal transactions and wash sales are not deductible for tax purposes. Personal-use property losses are nondeductible because they don't affect taxable income; wash sale loss deductions are disallowed to prevent artificial loss claims. Primary residence capital losses are also nondeductible.
Step-by-step explanation:
The types of transactions that result in capital losses that are not deductible for tax purposes include:
Personal transactions: Losses on personal-use property are generally not deductible. This is because personal-use property is not used for business or investment purposes and thus a loss on such property is not considered to have an impact on taxable income.
Wash sales: A wash sale occurs when an investor sells a security at a loss and repurchases the same or substantially identical security within 30 days before or after the sale. The Internal Revenue Code disallows the deduction of losses from wash sales to prevent taxpayers from claiming artificial losses.
While collectibles may bring about capital losses, these can be deductible, to an extent, on tax returns. The sale of a primary residence may result in a capital loss, but such losses on a personal residence are not deductible for tax purposes.