Choice "b" is correct. An individual's losses on transactions entered into for personal purposes are deductible only if the losses qualify as casualty or theft losses. In addition, the individual must itemize deductions and the loss must exceed 10% of AGI plus $100 per casualty.
Choice "c" is incorrect. If the losses can be characterized as hobby losses, none of the loss is deductible.
Choice "a" is incorrect. Losses entered into for personal purposes other than casualty losses are not deductible in any amount.
Choice "d" is incorrect. If no part of the transaction was entered into for profit, none of the related loss is deductible.
