Deductible by lee on his individual return

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Reference no: EM131087774

Lee sells equipment (basis $10,000) to related party, Lee Construction Inc., for $6,000. The $4,000 loss is:

Deductible by Lee on his individual return.

Not deductible by Lee but Lee Construction has a basis of $10,000 in the asset.

Not deductible by Lee but Lee Construction has a basis of $6,000 in the asset.

None of these.

Reference no: EM131087774

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