Larry owns the following assets listed below. Determine whether each asset is a capital asset: a) A motorcycle Larry uses for personal purposes. b) Shares of Blue Corporation that Larry owns as an individual investor. Does your answer change if Larry owns Bitcoin instead of shares? c) A Semi-truck that Larry uses in his trade or business. Suppose that Larry sells the motorcycle above for $10,000. He paid $12,000 for the motorcycle three years ago. Larry has no other gains or losses from the year. Can Larry deduct the loss from the motorcycle? Suppose that Larry sells the shares of Blue Corporation above for $15,000 cash. He paid $18,500 for the shares two years ago. Can Larry deduct the loss from the shares? Is this deductible above-the-line or below-the-line? a) Does your answer change if Larry sells Bitcoin for cash instead of shares? b) Does your answer change if Larry exchanges Bitcoin for land with a fair market value of $15,000

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a Motorcycle used for personal purposes This is not considered a capital asset because its used for ... View the full answer