C purchased two cars in 2012, a Corvette for $40,000 and a Buick for $20,000. Both cars were used solely for personal purposes.

C purchased two cars in 2012, a Corvette for $40,000 and a Buick for $20,000. Both cars were used solely for personal purposes. During the year, C sold the Corvette to a car collector for $45,000 and the Buick for $17,000. Based on these two transactions, he will report