Final answer:
Bob's related income from buying a truck at a discounted price from his employer is $12,000, which is the difference between the market value and the purchase price. His employer could deduct this amount, and Bob’s basis in the truck is the purchase price, $8,000.
Step-by-step explanation:
When Bob's employer sells him a truck worth $20,000 for $8,000, this transaction has implications for income, deductions, and basis for both parties. Bob's related income would be the difference between the fair market value and the purchase price, so his income would be $12,000.
This amount is often considered a type of compensation and could be taxable as income from fringe benefits. On the other side, Bob's employer could be eligible for a related deduction based on the amount of the truck's fair market value that exceeds the sales price, which is the same $12,000, assuming the truck was a business asset and other tax criteria are met. Lastly, Bob's basis in the truck, which determines the value for depreciation or future capital gains calculations, would be the amount he paid for it, so the basis would be $8,000.