Madison acquired shares in Johnson Tool and Die Corporation for $50,000; he sold the shares for $260,000.

1. What would be his taxable capital gain? 
2. If Johnson Tool and Die Corporation was a qualified small business corporation, how much can he claim against lifetime capital gains exemption? 
3. What conditions must a Qualified Small Business Corporation meet in order to be classified as such? 
4. How would your answer in (b) above change if instead of a qualified small business, Johnson Tool and Die was a qualified farm?

Answer rating: 100% (QA)

a 210000 The taxable capital gain would be 210000 which is the difference between ... View the full answer