Question

Are any of the following losses deductible on an individual’s income tax return? If so, is...

  1. Are any of the following losses deductible on an individual’s income tax return? If so, is the loss deductible “for” or “from” AGI? Explain each loss.

Loss                                                                     Amount

Loss on sale of stock in an individual’s wholly-owned business corporation           $4,000

Hobby loss in excess of hobby gross income                                      3,000

Gambling losses in excess of gambling winnings                                   8,000

Loss on sale of stock in individual’s investment portfolio                           9,000

Decline in value of stock held in individual’s investment portfolio                    7,000

Loss on sale of personal automobile                                             2,000

Total                                                                    $33,000

Business   Accounting   
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