You recently received the following e$-$mail from a client and friend:

Hey Berkeley College Accounting Major,

I cannot believe it is almost year end! Only a few days before it$$s $2023.$

As you recall, I was lucky enough to win big at the casino back on New Year$$s Day earlier this year $($thanks for celebrating with me$).$ I took the $$3,000$ I won and bought $100$ shares of stock in that cool new smartphone app company, TriviaAddiction. I just love playing that game. Anyway, the stock has done well, and I am thinking of selling before year end now that the price has reached $$240$ per share. Since you are my tax adviser, I thought I$$d ask a couple of questions:

Is there any reason to wait and sell later?

If I don$$t sell, the price might go down $($TriviaMaster seems to be replacing TriviaAddiction as the $$hot$$ new game$).$ I$$m thinking the price might be as low as $$220$ by early next year.

My taxable income this year and next year is expected to be $$38,500($not including the stock sale$).$ I think that puts me in the $12\%$ tax bracket? Any suggestions on what I should do$?$

Thanks!

Sue

Please advise your friend Sue and addressing her questions in your initial post. Be certain to include estimates of the different after$-$tax outcomes she is suggesting. Sue is a single taxpayer and not a tax expert and so your language should reflect her limited understanding of tax law and avoid technical jargon. Although Sue is your friend, she is also a client, therefore, the information presented in your post should reflect your professionalism and expertise in the matters concerning her.