Wanda is considering selling two personal use assets that she owns. One has appreciated in value by $20,000, and the other has declined in value by $17,000. Wanda believes that she should sell both assets in the same tax year so that the loss of $17,000 can offset the gain of $20,000.
a. Advise Wanda regarding the tax consequences of her plan.
b. Could Wanda achieve better tax results by selling the assets in different tax years? Explain.