Question

As of November 30, 2015, Ms. B had $12,000 capital losses and no capital gains. She owns 4,900 shares of GG stock with a $15 basis and a $45 FMV per share. Ms. B plans to hold her stock for three more years before selling it and using the proceeds to buy a home. However, she could easily sell 400 shares to trigger a $12,000 capital gain and then immediately repurchase them. If Ms. B’s marginal tax rate is 39.6 percent and she uses a 4 percent discount rate to compute NPV, should she implement this strategy?


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  • CreatedNovember 03, 2015
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