Essay
Tony receives an automobile from his uncle, Ned, as a graduation gift. Ned used the vehicle only for commuting to his office during the 3 years he owned it. Ned paid $20,000 for the vehicle. It is valued at $8,000 on the date of the gift. Tony will use the automobile 100% of the time for his business. Determine Tony's basis in the automobile for depreciation purposes. Explain your answer in terms of the concepts of taxation.
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Since the fair market value is less than...View Answer
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