PERSONAL ASSET LOSSES: EXAMPLE
01.Core Concepts
Anastasia purchased her personal residence sixteen months ago for $290,000. She lives in a city that has been heavily affected by the current recession, and she needs to sell her home and relocate due to a lucrative job offer. The best offer Anastasia receives on her home is $265,000. She sells her home and suffers an economic loss of $25,000. Anastasia’s loss on her personal asset is not tax deductible.