Joe purchased a van for $30,000 on February 1, 2014, for use with his business, Crew Airport

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Joe purchased a van for $30,000 on February 1, 2014, for use with his business, Crew Airport Transport. Joe elected to take the § 179 deduction for the entire cost. On January 1, 2016, Joe sold the van for $20,000. What were the tax effects of this transaction?
a. $10,000 loss
b. $20,000 capital gain
c. $20,000 ordinary gain
d. $10,000 capital gain, $10,000 ordinary gain
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Related Book For  answer-question

South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

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