Jackson Sells Qualifying Small Business Stock for $125,000 Adjusted Basis

question 42

True/False

Jackson sells qualifying small business stock for $125,000 adjusted basis of $105,000) in 2018 the stock was acquired in 2012). In calculating gross income for regular income tax purposes, he excludes all of his realized gain of
$20,000. The $20,000 exclusion is a preference in calculating Jackson's AMTI.

---

Definitions:

Average Daily Float

The average amount of uncollected funds in a company's checking account, representing checks written against and deposited in the account but not yet cleared.

Collection Float

The time period between when a payment is made by a customer and when the funds become available in the company’s account.

Cheques

Paper instruments that instruct a bank to pay a specific amount of money from the check writer's account to the person or entity in whose name the cheque has been issued.