Nancy also 6) Nancy has three property transactions during the year. She sold a vacation home used for personal purposes at a $21,000 gain. The home had been held for five years and had never been rented. sold a nice dining room set for $1,000 that she had inherited from her grandmother. The set was valued in Nancy's grandmother's estate at $2,000. Nancy owned the dining room set for only four months. Nancy sold these assets to finance her full-time occupation as a songwriter. During the year, Nancy earned $38,000 in song royalties as a result of licensing her songs. Nancy has no tax basis for the song. Nancy had no other income and $18,000 in deductible songwriting expenses. What is Nancy's adjusted gross income? 4) Why does the tax law require that capital gains and losses be separated from other types of gains and losses? 5) Can the sale of personal use assets result in reported capital losses