Sheralyn was in the wholesale business for pecans and peanuts grown in Georgia. She and her brother owned and operated several warehouses. Seven years ago, they purchased property for another warehouse in the eastern part of Georgia because the nut crop had been getting progressively larger over the past several years. Early last year they had plans drawn up for the warehouse and had gotten several bids from contractors. Unfortunately, Sheralyn’s brother was killed in an auto accident just days before they were to sign papers to begin the construction. Sheralyn knew that she would not be able to manage their existing warehouses and oversee the construction of this new facility. She abandoned plans to construct the warehouse and put the property up for sale. It was sold early this year at a $125,000 loss. How should Sheralyn treat the loss on the sale?
Sheralyn was in the wholesale business for pecans and pean…
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