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James is a plumber who buys a van for $50,000 and uses it solely when driving to job sites. James has another car to use
James is a plumber who buys a van for $50,000 and uses it solely when driving to job sites. James has another car to use personally. James takes correct depreciation of $30,000 over the several years he uses it in his business. James is also a recreational pilot and buys a small plane for $1,000,000. In 2017, James sells the van for $35,000, its fair market value and sells the plane for $800,000, its fair market value. Which of the following statements is the best answer? a. James can use the loss on the plane to offset the gain on the van b. James can deduct a long-term capital loss on the plane c. James will have $15,000 ordinary income d. James cannot deduct the loss on the plane e. Both A and B are correct f. Both C and D are correct
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