Question
Mary purchased an antique car five years ago for $20,000. After the purchase, she spent an additional $5,000 for restoration work on the car. She
Mary purchased an antique car five years ago for $20,000. After the purchase, she spent an additional $5,000 for restoration work on the car. She sold the car for $33,000. Mary is not in the antique auto business. What is the amount of the gain, and how should Mary report the gain from the sale of her antique car?
a) Mary is not required to report the gain from the sale of a personal asset.
b) Mary should report $13,000 as a gain on Form 8949 and on Schedule D.
c) Mary should report the income on Schedule C.
d) Mary should report $8,000 as a gain on Form 8949 and on Schedule D.
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