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Adam Purchased Stock in 2006 for $100,000

question 262

Essay

Adam purchased stock in 2006 for $100,000. He is considering selling it in 2018. It is currently worth $2,100,000 s would realize a $2,000,000 gain. Adam is in the top tax bracket. Determine the taxes due under the following independent situations (ignore any additional Medicare taxes on investment income):
a. Adam sells the stock, and no special circumstances apply.
b. The stock is qualified small business corporation stock.
c. The stock is qualified small business corporation stock. Within 60 days Adam invests $2,500,000 in new qualify business corporation stock.
d. The stock is qualified small business corporation stock. Within 60 days Adam invests $2,000,000 in new qualif small business corporation stock.


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