Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $40,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,300; paint to match the other fleet vehicles at a cost of $1,940; registration costs of $2,429, which included $2,200 of sales tax and an annual registration fee of $229; wash and detailing for $53; and an engine tune-up for $253. What is Jose's cost basis for the delivery van?

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $40,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,300; paint to match the other fleet vehicles at a cost of $1,940; registration costs of $2,429, which included $2,200 of sales tax and an annual registration fee of $229; wash and detailing for $53; and an engine tune-up for $253. What is Jose's cost basis for the delivery van?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 31CE

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Joe purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500. In addition, Jose incurred the following expenses before using the van: shipping cost of $650; paint to match the other fleet vehicles at a cost of $1,000; registration costs of $3,200. Which included $3,000 of sales tax and an annual registration fee of $200; wash and detailing for $50; and an engine tune-up for $250. What is Jose’s cost basis for the delivery van?
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