In 2014, Aaron Purchased a Classic Car That He Planned

question 112

Essay

In 2014, Aaron purchased a classic car that he planned to restore for $12,000. However, Aaron is too busy to work on the car and he gives it to his daughter Ellie in 2018. At this time, the fair market value of the car has declined to $10,000. Aaron paid no gift tax on the transaction. Ellie completes some of the restoration herself with out-of-pocket costs of $5,000. She later sells the car for $30,000. What is Ellie's recognized gain or loss on the sale of the car?

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Definitions:

Myopia

A common visual condition also known as nearsightedness, where distant objects appear blurry while close objects can be seen clearly.

Self-Worth

An individual's subjective evaluation of their own value or worth as a person.

Labyrinthine Motor Skills

Complex movements and coordination guided by the inner ear's structures, related to balance and spatial orientation.

Systemic Motor Skills

Broad physical abilities involving large muscle movements such as walking, running, and jumping, which require coordination of the body’s muscular and nervous systems.