Becker Question CPA-02194

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  • #157411
    Anonymous
    Inactive

    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?

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  • #218503
    AARON
    Participant

    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)

    #218504
    AARON
    Participant

    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)

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