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 2020. What is the effect of the sale of the stock on Yorgi’s tax liability if her marginal tax rate is 35 percent?

Data from 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, 2020. The stock retains its qualified small business status through the date of the sale.