Cory recently sold his qualified small business stock (acquired in 2017) for $90,000 after holding it for ten years. His basis in the stock is $40,000. Assuming his marginal tax rate is 35 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 income under Section 1202 of the Internal Revenue Code, as he held it for more than five years. Therefore, he owes no tax on the gain.

Cory Recently Sold His Qualified Small Business Stock (Acquired in 2017)