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

question 47

True/False

Jackson sells qualifying small business stock for $125,000 (adjusted basis of $105,000) in 2017 (the stock was acquired in 2011). 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.