A taxpayer inherits a classic car worth $37,000 at the date of the inheritance. They later get an offer to purchase the car for $45,000 and they seriously consider it despite the sentimental value. They are concerned about being able to pay the tax on the full gain. What is the appropriate response if this was presented as a question to you, the preparer? 

Answer rating: 100% (QA)

As the preparer the appropriate response would be to advise the taxpayer on the tax implications of ... View the full answer