Ask Question
BusinessBusiness
26 December, 19:58

During the year, Sara sold a capital asset at a loss of $2,000. She had held the asset as an investment. This is the only capital asset she sold during the year. Is her deduction for this capital loss a deduction for or a deduction from AGI

+5
Answers (1)
  1. 26 December, 20:23
    0
    Answer: A deduction for a loss incurred on the sale of a capital asset held for investment is a deduction for AGI.

    Explanation:

    AGI means the Adjusted gross income in the US tax system. Specific deductions are made from the individuals gross income to arrive at the AGI. the income which is taxable is calculated from the adjusted gross income from which personalized exemptions and itemized deductions.

    In this case Sara has got a loss of $2,000 on the investment so this amount is deducted as a capital loss for AGI. AGI factors many allowable deductions from the gross income on which the income tax liability is calculated.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “During the year, Sara sold a capital asset at a loss of $2,000. She had held the asset as an investment. This is the only capital asset she ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process.
Answers (1)
On October 1, Eder Fabrication borrowed $55 million and issued a nine-month, 13% promissory note. Interest was payable at maturity.
Answers (1)
What is important to know about yourself when making a career choice? Class Financial Literacy
Answers (1)
Francis updates the steps to the occupation manual frequently to maintain the best measures to perform his job. this is an example of a (n) :
Answers (1)
When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective?
Answers (1)
New Questions in Business
If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, cash paid for bond interest is: a.$790,000. b.$784,000. c.$806,000. d.$910,000.
Answers (1)
Peter calls his friend Lily to borrow $500. On the side of a box, Peter writes and signs a note stating he will pay back the $500 as long as Lily allows him to use her car until he gets a job.
Answers (1)
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 42,800 Current assets $ 17,500 Long-term debt $ 37,000 Costs 35,500 Fixed assets 68,300 Equity 48,800 Taxable income $ 7,300 Total $ 85,800
Answers (1)
Steps that explain exactly what you are going to do to reach your goal are called
Answers (1)
The following information is available for Splish Brothers Corp. for the year ended December 31, 2022.
Answers (1)
Home » Business » During the year, Sara sold a capital asset at a loss of $2,000. She had held the asset as an investment. This is the only capital asset she sold during the year. Is her deduction for this capital loss a deduction for or a deduction from AGI
Sign Up Forgot Password?