Drake and Lisa Tim's file a joint tax return and decide to itemize their deductions. In 2022 the Tim's sold a personal-use asset. The asset was acquired in November 2021 with a basis of $17,000 and sold for $15,000 in February 2022. In addition, the Tim's' income for the year consists of $90,000 in salary, and $2,000 interest income. Assuming that the Tim's' have other allowable long term losses of $(800) for the year and a marginal tax rate is 35 percent.

What is the amount of their net capital loss deduction for the year?

Answer rating: 100% (QA)

To calculate the Tims net capital loss deduction for the year we need to follow these steps 1 Calcul... View the full answer