Steve has a capital loss carryover in the current year of $30,000.He owns 3,000 shares of stock in Carmine Corporation,which he purchased six years ago for $20 per share.In the current year,Carmine Corporation (E & P of $750,000)redeems all of his shares for $140,000.Steve is in the 33% tax bracket.What is his income tax liability with respect to the corporate distribution if:

Question

Steve has a capital loss carryover in the current year of $30,000.He owns 3,000 shares of stock in Carmine Corporation,which he purchased six years ago for $20 per share.In the current year,Carmine Corporation (E & P of $750,000)redeems all of his shares for $140,000.Steve is in the 33% tax bracket.What is his income tax liability with respect to the corporate distribution if:
Steve has a capital loss carryover in the current year of $30,000.He owns 3,000 shares of stock in Carmine Corporation,which he purchased six years ago for $20 per share.In the current year,Carmine Corporation (E & P of $750,000)redeems all of his shares for $140,000.Steve is in the 33% tax bracket.What is his income tax liability with respect to the corporate distribution if:

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The Answer of Steve has a capital loss carryover in the current year of $30,000.He owns 3,000 shares of stock in Carmine Corporation,which he purchased six years ago for $20 per share.In the current year,Carmine Corporation (E & P of $750,000)redeems all of his shares for $140,000.Steve is in the 33% tax bracket.What is his income tax liability with respect to the corporate distribution if:

Steve Has a Capital Loss Carryover in the Current Year