Read the attached article. Do you think the Janice could claim a loss for tax purposes on this sale? If so, what type of loss could be claimed? Do you think the loss would be beneficial to Janice? What about the purchaser? Do you think the purchaser has an obligation to return the ring? If the purchaser returns the ring, and receives a reward greater than $10, will the purchaser have any income tax obligations? If the purchaser keeps the ring, will there be any income tax obligations related to the purchase? Does the purchasers tax obligation depend on what the purchaser does with the ring? What if the purchaser sells it for its appraised value?

Husband accidentally sells wife's wedding ring for $15 Janice Que, 33, was in for a big surprise when she returned home from the hospital after having minor surgery. She discovered that her husband, Hank, had sold an old wooden photo box for $15 at a community garage sale. But this was not just any old photo box. It had Janice's $20,000 wedding ring in it, hidden underneath the main compartment. Unfortunately the ring was not insured. Hank did not know that before Janice went to the hospital, she had put her ring into the box. She wanted it to be in a safe place and out of reach of her two-year-old twins. While Janice was in hospital recovering, Hank thought it would be a good idea to get rid of some stuff in house. "I saw this big box in my closet. It had been there for over a year, and was probably worth about $100 dollars," Hank explained. Because he didn't need the box nor use it, he thought it would be an ideal item to get rid of. And after doing a quick look inside the box, he sold it to an unsuspecting woman for $15. "It means so much to Janice. I hope the lady will bring it back. I'll give her a reward for it. Not a $20,000 reward, but I'll give her a reward," said Hank. "The ring has so much sentimental value to me; it's a symbol of our relationship. I feel naked every time I look down at my finger..." Janice said. "I keep crying about it. I hope the woman that bought the box brings my ring back