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Melanie buys a car for $40,000. She paid $20,000 cash, borrowed $10,000, and gave the seller some jewelry that Melanie received from her mom as
Melanie buys a car for $40,000. She paid $20,000 cash, borrowed $10,000, and gave the seller some jewelry that Melanie received from her mom as a gift this year (the jewelry was/is worth $10,000 and her mom paid $5,000 for it 20 years ago). What is Melanies basis in the car? Any other tax issue here?
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