Business, 07.04.2020 02:50 dannyboy5911
Steve is the sole owner of Barb, Inc. (a C-Corp) and has grown the business over the last 15 years. He decides to sell 40% of his non-publicly-traded corporate stock on July 1 of this year to an ESOP for $8 million. His adjusted basis for his entire (100%) stock position was $3 million. On February 4th, the year following the sale, Steve uses all $8 million to buy shares of Apple Stock. Which of the following statements is true?
a. He will have a capital gain of $5.0 million this year (year of the sale) for tax purposes
b. He will have a capital gain of $6.8 million this year (year of the sale) for tax purposes.
c. Steve will not have a capital gain this year (year of the sale) for tax purposes.
Answers: 1
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Steve is the sole owner of Barb, Inc. (a C-Corp) and has grown the business over the last 15 years....
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