In September of 2016,Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000.She had held the stock for 17 months.Forty-five days after the sale she purchased other qualified small business stock for $1,100,000.What is the basis in the new stock she purchased?

Question

Quizplus · Accepted Answer

Michelle's basis in the new stock is determined by the amount she paid for it, which is $1,100,000. The fact that she sold other shares for $1,000,000 and had a basis of $200,000 is irrelevant to the basis in the new stock.

In September of 2016,Michelle Sold Shares of Qualified Small Business