On 13 February 2022, Michael Mason steals a 2012 Mercedes SLK 350 sports car from a residential home in Christchurch. He then sells the SLK 350 sports car two weeks later to an unsuspecting buyer for $22,000. The buyer was very pleased with the deal because his research indicates that an SLK 350 sports car has a market value of $28,000.

Required:

With reference to relevant legislation and case law, briefly discuss the tax implications for Michael of the sale of the stolen Mercedes SLK 350 sports car for $22,000.

Answer rating: 100% (QA)

As per the IRSs 2021 federal income tax guide If you steal property y... View the full answer