Question

Bailey stood in line for hours and purchased the new game system the day it became available for $600. Knowing that there was a high demand for the game system and a limited supply, she decided to put the item on E-bay rather than keep it. She sold it for $950. She also sold her five-year old car for $5,000. She had purchased the car for $13,000. What is the taxable nature of these transactions?

Answer 1

Um don’t know sorry,isn’t this I-ready?

Answer 2

Answer:

the correct answer is

Bailey has a taxable short-term gain of $350, but no deductible loss for the car.

good luck