Ted sells his personal automobile for $2,000. He purchased the automobile six years ago for $14,000. In addition, Ted has a $7,000 long-term capital gain from the sale of stock that he held as an investment. What amount should Ted report on his individual income tax return related to these transactions?
$7,000 net capital gain
$4,000 net capital gain
$5,000 net capital loss
$3,000 net capital loss
Solution
Ted reports on his indiviual income tax return related to these transactions is $ 7000.
As Car is not the asset. so it will not effect in the capital gain or capital loss.
.
Ted sells his personal automobile for $2-000- He purchased the automob.docx
1. Ted sells his personal automobile for $2,000. He purchased the automobile six years ago for
$14,000. In addition, Ted has a $7,000 long-term capital gain from the sale of stock that he held
as an investment. What amount should Ted report on his individual income tax return related to
these transactions?
$7,000 net capital gain
$4,000 net capital gain
$5,000 net capital loss
$3,000 net capital loss
$7,000 net capital gain
$4,000 net capital gain
$5,000 net capital loss
$3,000 net capital loss
Solution
Ted reports on his indiviual income tax return related to these transactions is $ 7000.
As Car is not the asset. so it will not effect in the capital gain or capital loss.
