dhuffman
offlineMember
The answer to this is really bothering me. The question asks: Joe owns a limosine for use in his business (I'm paraphrasing a bit). The adjusted basis is $40,000. In addition, Joe owns his personal residence and furnishings, that together cost him $280,000. Joe's capital assets amount to:
the correct answer is $280,000. I understand that the limosine is business property. But why would a personal residence and furnishings be counted as capital assets?
AARON
offlineMember
A capital asset is any property owned and used for personal purposes or investment such as:
a house owned and used by you or your family;
household furnishings;
car used for pleasure or commuting;
stocks and bonds held in your personal account;
commodity futures contracts held for speculative purposes;
property held for investment such as land;
coin or stamp collection;
gems, jewelry;
gold, silver, or any other metal;
goodwill.
You must log in to post.