Return to the facts of Problem 48. Assume that Yorgi has a net capital loss of $80,000 from her other capital asset transactions in 2016. What is the effect of the sale of the stock on Yorgi's tax liability if her marginal tax rate is 33%.

In Problem 48

Yorgi purchases qualified small business stock in Gnu Company, Inc., on September 15, 2008, for $50,000. She sells the shares for $400,000 on December 30, 2016. The stock retains its qualified small business status through the date of the sale.