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Author Question: A shareholder sells his S corporation stock and realizes a $500,000 gain. The stock had been held ... (Read 354 times)

Capo

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on: Sep 13, 2020
A shareholder sells his S corporation stock and realizes a $500,000 gain. The stock had been held five years. Which of the following statements most completely describes the character of the gain?
◦ A long-term capital gain taxed at the 15%/20% capital gains rate. If the corporation owns collectibles, gain attributable to those assets will be taxed at the 28% long-term capital gain rate.
◦ Ordinary income to the extent of the shareholder's share of the businesses unrealized receivables and appreciation on inventory, with the balance taxed at the 15%/20% capital gain rate.
◦ The portion of the gain attributable to unrecaptured Sec. 1250 gain taxed at 25%, with the balance taxed at the 15%/20% capital gain rate.
◦ Both Ordinary income to the extent of the shareholder's share of the businesses unrealized receivables and appreciation on inventory, with the balance taxed at the 15%/20% capital gain rate and The portion of the gain attributable to unrecaptured Sec. 1250 gain taxed at 25%, with the balance taxed at the 15%/20% capital gain rate apply to the gain from the sale of S corporation stock.
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by Capo on Sep 13, 2020

juliaf

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Reply #1 on: Sep 13, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Capo

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Reply 2 on: Sep 13, 2020
Great answer, keep it coming :)

skipfourms123

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Reply 3 on: Yesterday
:D TYSM

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