A taxpayer bought a second-hand vehicle for $12,000 in August 2023 and sold it for $14,000 in April 2024. Which the following statements is correct?Question 19Answera.Unless the taxpayer is a trader, the gain is ordinary income. The taxpayer is liable for capital gains as the vehicle is a personal use asset.c.A vehicle is specifically exempt under capital gains provisions.d. The vehicle is not a personal use asset if purchased for less than $20,000.
A taxpayer bought a second-hand vehicle for $12,000 in August 2023 and sold it for $14,000 in April 2024. Which the following statements is correct?Question 19Answera.Unless the taxpayer is a trader, the gain is ordinary income. The taxpayer is liable for capital gains as the vehicle is a personal use asset.c.A vehicle is specifically exempt under capital gains provisions.d. The vehicle is not a personal use asset if purchased for less than $20,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:A taxpayer bought a second-hand vehicle for $12,000 in August 2023 and sold it for $14,000 in April 2024. Which of
the following statements is correct?Question 19Answera.Unless the taxpayer is a trader, the gain is ordinary income.b.
The taxpayer is liable for capital gains as the vehicle is a personal use asset.c. A vehicle is specifically exempt under
capital gains provisions.d. The vehicle is not a personal use asset if purchased for less than $20,000.
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