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Erin, a Single Taxpayer, Has 1,000 Shares of 1244 Stock

question 1250

Essay

Erin, a single taxpayer, has 1,000 shares of 1244 stock she purchased directly from AAA Corporation for
$120,000 five years ago. The stock has a FMV of $30,000, and Erin is thinking of selling the stock. She has no other capital gains or losses for the year. Discuss the tax consequences and planning opportunities relating to selling the stock.


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