Real Property Cannot Be Turned into Personal Property by Detaching

question 26

True/False

Real property cannot be turned into personal property by detaching it from the land.

---

Definitions:

Sole Proprietor

An individual who owns and operates a business alone, bearing sole responsibility for its operations and liabilities.

Short-Term Capital Losses

Financial losses realized from the sale of an asset held for a year or less, which can be used to offset capital gains and reduce taxable income.

Capital Asset

Any type of asset that is held for investment or for personal use, including stocks, bonds, real estate properties, and collectibles, among others.

Taxpayer

An individual or entity legally obligated to pay taxes to a governmental authority, such as the IRS.