Michael had a $4,000 loss on the sale of his car. He A) cannot dedu

Michael had a $4,000 loss on the sale of his car. He

A)

cannot deduct the capital loss on this personal use asset.
B)

can only deduct up to $3,000 of the loss in the initial year of the sale.
C)

can deduct the entire $4,000 loss in the year of the sale.
D)

can deduct $3,000 in the year of the sale and the remaining loss in a subsequent tax year.

ANSWER

A