Cheryl purchased 500 shares of Qualified Small Business Stock (QSB) for $900,000 on March 2, 2010. On November 29, 2018, she sells the stock for $1,000,000. Cheryl also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000. Cheryl has $180,000 of other income. Which of the following statements about the stock sale is/are true?
I.The tax paid on Cheryl's two stock sales is $4,200.
II.Cheryl can only deduct $3,000 of the $10,000 loss on the sale of the stock.

Question

Cheryl purchased 500 shares of Qualified Small Business Stock (QSB) for $900,000 on March 2, 2010. On November 29, 2018, she sells the stock for $1,000,000. Cheryl also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000. Cheryl has $180,000 of other income. Which of the following statements about the stock sale is/are true?
I.The tax paid on Cheryl's two stock sales is $4,200.
II.Cheryl can only deduct $3,000 of the $10,000 loss on the sale of the stock.
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Quizplus · Accepted Answer

The Answer of Cheryl purchased 500 shares of Qualified Small Business Stock (QSB) for $900,000 on March 2, 2010. On November 29, 2018, she sells the stock for $1,000,000. Cheryl also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000. Cheryl has $180,000 of other income. Which of the following statements about the stock sale is/are true?
I.The tax paid on Cheryl's two stock sales is $4,200.
II.Cheryl can only deduct $3,000 of the $10,000 loss on the sale of the stock.
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Cheryl Purchased 500 Shares of Qualified Small Business Stock (QSB)