Research Problem 2. For three years, Amos, a calendar year taxpayer, has owned stock that is qualified small business stock under § 1045. The stock has an adjusted basis of $10,000.

On July 2, 2013, he sells the stock for $100,000. On August 3, 2013, he uses the sales proceeds of $100,000 to purchase other qualified small business stock. If possible, Amos would like to defer any recognized gain on the sale of the stock. Advise Amos on the tax consequences of the sale and the subsequent purchase and the procedure he must follow to achieve his deferral objective.