Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss Workout

Skills Workout

Certification Warm Up: Drill & Practice

  1. In order to compute gain or loss on a sale, taxpayers must provide their basis in the sold property. Is this a true statement?
  2. The number of days for the sale of a security does not matter for a wash sale. Is this a true statement?
  3. Susan bought and moved into a house in July 2020. She lived there for 13 months and then moved in with a friend. She moved back into her own house in 2023 and lived there for 12 months until she sold it in July 2024. Does Susan meet the ownership and use tests?
  4. Mario rents an apartment in his hometown. He works two hours away and has purchased a motor home to live in during the workweek. Is the motor home is considered his main home.
  5. William owned and used a house as his main home from 2016 through 2022. On January 1, 2023, he moved to another state. He allowed his sister to live in the house from that date until April 30, 2024, when he sold it. Does he meet the ownership and use tests?
  6. Mary owns a home in a new suburb outside the city. She works in the city. On the weekends she lives in her home in the suburb. Monday through Friday she lives in her boat that she keeps docked in the downtown harbor. Is her suburban home considered her main home because she owns it?
  7. A taxpayer's deduction limit (the net allowable capital loss per year) cannot be more than $3,000 ($1,500 for married taxpayers filing separately) in figuring taxable income for any single tax year. Is this a true statement?