This year, Jonathan sold some qualified small business stock that he acquired in December 2010. His basis in the stock was $100,000 and he sold it for $400,000, resulting in a $300,000 gain. How much of Jason's gain is taxable?

Question

Weber

Business

2 July, 13:19

This year, Jonathan sold some qualified small business stock that he acquired in December 2010. His basis in the stock was $100,000 and he sold it for $400,000, resulting in a $300,000 gain. How much of Jason's gain is taxable?

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Answers (1)

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Ronald Hatfield · Answer 1

Jonathan will pay 15% of his gains as capital gains tax now.

That is 15% of $300000=$45000

Explanation:

In answering this question, some assumptions need be made, they are as follows:

1. I assume that Jonathan is single

2. The disposal proceeds from the sale of stock is his only income for 2020, in other words his income is $400,000.

In agreement with tax laws, a single person with income between $40001 and $441,450 will pay capital gains tax 15% on the gains.