Under federal income tax regulations, an individual may not deduct a loss on the sale of residential property unless:
A: The loss exceeds 20% of the individual's adjusted gross income;
B: The property was also used for business purposes and showed a profit for the 3-year period immediately preceding the sale;
C: The individual shows an additional capital gain which would be offset by the sale;
D: The property was bought as an investment and was rented or leased out as such.
Answer: D: The property was bought as an investment and was rented or leased out as such.
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Which of the following is most likely to be a temporary source of financing?
A) commercial paper B) common stock C) preferred stock D) long-term debt
Under which of the following circumstances would Sue's PAP pay something for the loss?
A) Sue borrows her neighbor's car with permission. She causes an accident and is sued for an amount LESS THAN her neighbor's limit of liability. B) Sue borrows her neighbor's car with permission. She causes an accident and is sued for an amount MORE THAN her neighbor's limit of liability. C) Sue regularly uses her car in a business to drive college students to the airport for $50 one-way. She causes an accident and is sued by one of her paying passengers. D) Sue is sued for causing a collision while operating a motorcycle.