Matthew had a $4,000 gain from the sale of his car. He A) need not

Matthew had a $4,000 gain from the sale of his car. He

A)

need not report the gain since it arose from the sale of a personal asset.
B)

must report the gain as a capital gain.
C)

must report only half the gain since capital gains enjoy favorable tax treatment.
D)

can defer paying taxes on the gain by buying another customized car of equal or greater value.

ANSWER

B