Question:
Conversion - personal use to business use
Alice starts a taxi service and decide to use her peronal car as the first taxi in her new business. the car will be used solely for business purposes. the car had an orginal cost of $20,000 and fair market value at the date of conversion to business use of $11,000. During the first year of use she is allowed depreciation of $ 3000 on the car. early in the second year of use she sells the car for $5000. what is the amount of her gain or loss on sale?