Cory recently sold his qualified small business stock for $82,000 after holding it for 10 years. His basis in the stock is $48,000. Applying the rules as if the stock were acquired in 2020 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 income tax if held for more than 5 years, as per Section 1202 of the Internal Revenue Code. Therefore, he owes no tax on the gain.

Cory Recently Sold His Qualified Small Business Stock for $82,000