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On June 1, 2018 your grandfather gave you his old car with an adjusted basis of $8,000 and a fair market value of $5,000. You
On June 1, 2018 your grandfather gave you his old car with an adjusted basis of $8,000 and a fair market value of $5,000. You had the engine rebuilt at a cost of $2,500 and sold it to an unrelated party in 2019 for $10,000. What do you report on your 2019 tax return from this sale?
A. $2,500 long term capital gain B. $5,000 long term capital gain C. $500 long term capital Loss D. Zero
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