Ms. Kaspari, who has a 24 percent marginal tax rate on ordinary income, acquired the following blocks
Question:
Ms. Kaspari, who has a 24 percent marginal tax rate on ordinary income, acquired the following blocks of stock in KDS, a closely held corporation.
July 12, 2003 ........................................................... 1,400 shares at $41 per share
December 3, 2007 ................................................. 800 shares at $46 per share
September 30, 2015 ............................................. 2,000 shares at $49 per share*
May 2, 2018 ........................................................... 750 shares at $53 per share
*Qualified small business stock.
In November 2018, Ms. Kaspari agreed to sell 1,000 KDS shares to Mr. Nolan for $60 per share. Which shares should she sell to maximize her after-tax cash from the sale?
Step by Step Answer:
Principles Of Taxation For Business And Investment Planning 2019 Edition
ISBN: 9781260161472
22nd Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan