Tanya is in the 32% tax bracket.She acquired 1,000 shares of stock in Swan Corporation seven years ago for $100 a share.In the current year, Swan Corporation E & P of $1.2 million) redeems all of her shares for $160,000.What are the income tax consequences to Tanya if:
a.If the redemption qualifies for sale or exchange treatment, Tanya will have a long-term capital gain of $60,000 [$160,000 amount realized) - $100,000 stock basis)].Her income tax liability on the $60,000 gain will be $9,000 $60,000 ×
a.The redemption qualifies for sale or exchange treatment, and Tanya has no other transactions in the current year involving capital assets?
b.The redemption does not qualify for sale or exchange treatment?

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The Answer of Tanya is in the 32% tax bracket.She acquired 1,000 shares of stock in Swan Corporation seven years ago for $100 a share.In the current year, Swan Corporation E & P of $1.2 million) redeems all of her shares for $160,000.What are the income tax consequences to Tanya if:
a.If the redemption qualifies for sale or exchange treatment, Tanya will have a long-term capital gain of $60,000 [$160,000 amount realized) - $100,000 stock basis)].Her income tax liability on the $60,000 gain will be $9,000 $60,000 ×
a.The redemption qualifies for sale or exchange treatment, and Tanya has no other transactions in the current year involving capital assets?
b.The redemption does not qualify for sale or exchange treatment?

Tanya Is in the 32% Tax Bracket