Question: On July 23rd, 2021, Martha bought a used car for $8,350. In addition, she paid $814.25 in sales tax to her local county (in California). Martha then sold the car on November 23, 2021 for $9,755. Assuming Martha did not incur any expenses for the car when she owned it, how does Martha report the sale on her tax return?
a) Report a $ 9,755.00 long-term capital gain.
b) Report a $ 9,755.00 short-term capital gain.
c) Report a $ 590.75 long-term capital gain.
d) Report a $ 590.75 short-term capital gain.