In 2006, Gita contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified small business corporation for all of its common stock. She sells the stock in 2018 for $4,000,000.a. What is the amount of taxable gain on the transaction?b. Assume instead that the stock was acquired in December 2010. What is the amount of the taxable gain?

What will be an ideal response?


a. The amount of the realized gain is $4,000,000 - $500,000 = $3,500,000. Fifty percent of the gain ($1,750,000) is eligible for the exclusion for qualified small business stock. $1,750,000 is taxable.
b. Because the qualifying stock was acquired after September 27, 2010, the 100% exclusion provisions apply. None of the gain is taxable.

Business

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He wants to become a full time volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause. This group of environmental activists can be categorized under which of the following reference groups? A) primary group B) secondary group C) aspirational group D) dissociative group E) cognitive group

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Third ear is the interviewer characteristic described as "has a natural affinity for telephone research-enjoys collecting opinions via the telephone."

Indicate whether the statement is true or false

Business

Which of the following types of strikes is legal?

A) Strikes occurring 75 days after union notification to the employer of a possible strike B) Sit-down strikes C) Partial strikes D) Wildcat strikes E) Violent strikes

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If expected return is less than required return on an asset, rational investors will:

A) Buy the asset, which will drive the price up and cause expected return to reach the required return. B) Sell the asset, which will drive the price down and cause the expected return to rise. C) Sell the asset, which will drive the price up and cause the expected return to drop. D) Buy the asset, since price is expected to increase.

Business