Jill has a capital loss carryover in the current tax year of $50,000.She owns 2,000 shares of stock in Black Corporation which she purchased nine years ago for $60 per share.In the current year,Black Corporation redeems all of her shares for $350,000.Black Corporation has adequate E & P to cause any distribution to be dividend income.Jill is in the 35% tax bracket.What are the tax consequences to Jill if:
a.The redemption qualifies for sale or exchange treatment, and Jill 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 Jill has a capital loss carryover in the current tax year of $50,000.She owns 2,000 shares of stock in Black Corporation which she purchased nine years ago for $60 per share.In the current year,Black Corporation redeems all of her shares for $350,000.Black Corporation has adequate E & P to cause any distribution to be dividend income.Jill is in the 35% tax bracket.What are the tax consequences to Jill if:
a.The redemption qualifies for sale or exchange treatment, and Jill has no other transactions in the current year involving capital assets?
b.The redemption does not qualify for sale or exchange treatment?

Jill Has a Capital Loss Carryover in the Current Tax