Question

Antoine sold the following stock in 2018. ABC, Inc., is a § 1202 qualified small business (QSB).

Asset	Cost		Acquired	Sale Price			Sale Date
ABC, Inc. 160 shares	$	116,800	1/10/10		$	149,760	4/30/18
DEF, Inc. 128 shares		23,040	11/15/14			17,280	2/28/18
GHI, Inc. 64 shares		22,912	3/31/17			20,608	8/30/18

1. Complete the chart.
2. After netting, what is the total gain or loss?
3. If Antoine is in the 37% tax rate bracket, at what rate is the net gain or loss taxed?

Answer 1

1. A.

   Sales value of 352 Shares = $187648
2. Purchase price of 352 Shares = 162752
3. (1-2). Profit before tax = 24896
4. tax@37% = 9211.52
5. Profit after Tax = 15684.48

B.    Total gain after the netting = 24896

C. Total gain after the tax = 15684.48