The taxable portion of a gain from qualified small business stock is taxed at a top tax rate of
A)15%.
B)18%.
C)20%.
D)28%.

Question

Quizplus · Accepted Answer

D)By definition,a Sec 1202 gain from the sale of small business stock is not an ANCG (adjusted net capital gain)even though it must be held for more than five years.It is subject to a maximum tax rate of 28%.However,50% of the gain can be excluded.If the stock is acquired after February 17,2009,either 75% or 100% can be excluded.

The Taxable Portion of a Gain from Qualified Small Business