C replaced the car that she had used exclusively for her business with a new model.The older car cost $20,000, and its basis after allowable depreciation had been $15,500 at the time C converted it to personal use.This year C sold the older car for $9,000.What loss on the sale may she claim as a deduction?
A)$0
B)$6,500
C)$11,000
D)C's loss is indeterminable from the given information.

Question

Quizplus · Accepted Answer

The loss C may claim is $0 because the car was converted to personal use before the sale. Losses on personal use property are not deductible for tax purposes.

C Replaced the Car That She Had Used Exclusively for Her