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 by completing the statements below. For tax purposes, the sale of a personal use asset resulting in a gain is and the sale of a personal use asset resulting in a loss is. Therefore, Wanda reports for tax purposes.
b. Could Wanda achieve better tax results by selling the assets in different tax years?. If Wanda sells the assets in different years, she reports for tax purposes a gain of and a loss of.
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