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During 2018, Kim realized losses on 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 recognize?

User Frenz
by
8.3k points

1 Answer

3 votes

Answer:

$2,000

Step-by-step explanation:

Personal losses cannot be deducted, only business related losses are deductible.

The realized loss on the pleasure yacht is considered a personal loss, therefore, it cannot be deducted. Since the car was used for business purposes, the $1,000 is deductible, and the $1,000 loss in stocks is also deductible.

User Ti Amo Laky
by
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