Cory recently sold his qualified small business stock for $90,000 after holding it for ten years. His basis in the stock is $40,000. Applying the rules as if the stock were acquired in 2018 and assuming his marginal tax rate is 32 percent, how much tax will he owe on the sale?

Question

Quizplus · Accepted Answer

$-0-. $90,000 − $40,000 = $50,000 realized gain; 100 percent of the gain on qualified small business stock acquired in 2018 and held for more than five years is excluded.

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