Cory recently sold his qualified small business stock for $90,000 after holding it for 10 years.His basis in the stock is $40,000.Applying the rules as if the stock were acquired in 2019 and assuming his marginal tax rate is 32 percent,how much tax will he owe on the sale?

Question

Quizplus · Accepted Answer

Cory's qualified small business stock is eligible for a 100% exclusion of the gain from gross income under Section 1202, as it was held for more than 5 years. Therefore, he owes no tax on the sale.

Cory Recently Sold His Qualified Small Business Stock for $90,000