In 2013,Frank sold his personal use automobile for a loss of $9,000.He also sold a personal coin collection for a gain of $10,000.As a result of these sales,$10,000 is subject to income tax.

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The gain on the coin collection ($10,000) will be included in Frank's taxable income, but the loss on the automobile sale cannot be used to offset other income for tax purposes. Therefore, $10,000 will be subject to income tax.

In 2013,Frank Sold His Personal Use Automobile for a Loss