A car bought 3 years ago for $65 000 and was used solely for personal use was sold for $25 000. The book value of the car is $27500.

A car bought 3 years ago for $65 000 and was used solely for personal use was sold for $25 000. The book value of the car is $27500.

Advise as to the tax implications of disposals and calculate any amounts required to be declared in tax return.