Kurt, a​ cash-basis taxpayer, sells the following marketable​ securities, which are capital assets during 20162016.

​Kurt, 

 a​ cash-basis taxpayer, sells the following marketable​ securities, which are capital assets during

20162016.

 

QI:5-26
How might the current treatment of capital losses discourage an individual investor from purchasing stock of a​ high-risk, start-up​ company?


QI:5-27
An individual taxpayer has realized a​ $40,000 loss on the sale of an asset that had a holding period of eight months. Explain why the taxpayer may be indifferent as to whether the asset is a capital asset.