Thx for the quick and helpful responses so far everyone. Here's another one.
Why is this not a capital loss??
Tom Lewis, an individual taxpayer, sold his personal automobile (never used for business purposes) for $5,000 in 2014. He purchased the automobile five years earlier for $10,000. Which of the following is the correct treatment of this transaction on Tom's 2014 tax return (assuming that Tom's only other source of income in 2014 was from wages)?
A.
Include $5,000 as miscellaneous income on his tax return.
B.
Deduct a $5,000 long-term capital loss on his tax return.
Incorrect C.
Deduct a $3,000 long-term capital loss on his 2014 tax return, and carry over the remaining $2,000 to the next year.
D.
Show neither income nor loss from this transaction on his tax return.
.