Question: TRUE OR FALSE 1. When an individual sells a capital asset and provides a warranty, the estimated cost of providing the warranty must be deducted

TRUE OR FALSE

1. When an individual sells a capital asset and provides a warranty, the estimated cost of providing the warranty must be deducted as a capital loss in the year of sale.

2. When a property is converted from a rental property to a principal residence, the taxpayer can elect to have the property designated as his principal residence for up to four years prior to the time it stopped being used as a rental property.

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