[Anonymous]

The answer to this Becker Question is really bothering me. The question asks: Joe owns a limosine for use in his business (I’m paraphrasing a bit). The adjusted basis is $40,000. In addition, Joe owns his personal residence and furnishings, that together cost him $280,000. Joe’s capital assets amount to:

the correct answer is $280,000. I understand that the limosine is business property. But why would a personal residence and furnishings be counted as capital assets?

[AARON]

Is this a tax/REG question? If so, for tax purposes… almost all personal items are considered capital assets… annoying I know…

? AUD - 87 (8/12/09)
? REG - 77 (1/15/10
? BEC - 77 (1/6/09 - Expired) / 79 (11/18/10)
? FAR - 75 (2/11/11)

[AARON]

A capital asset is any property owned and used for personal purposes or investment such as:

•a house owned and used by you or your family;

•household furnishings;

•car used for pleasure or commuting;

•stocks and bonds held in your personal account;

•commodity futures contracts held for speculative purposes;

•property held for investment such as land;

•coin or stamp collection;

•gems, jewelry;

•gold, silver, or any other metal;

•goodwill.

? AUD - 87 (8/12/09)
? REG - 77 (1/15/10
? BEC - 77 (1/6/09 - Expired) / 79 (11/18/10)
? FAR - 75 (2/11/11)

[Author]

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