In 2019, Peter purchased 150 shares of Able Manufacturing Corporation stock for $75,000. Able is a C corporation that has 40 shareholders. None of the other 39 shareholders own more than 5% of the 5,000 shares outstanding. No events have occurred that have changed either the number of shares of stock that Peter owns, or Peter’s total basis in his shares. Peter is unhappy with Able’s management. It is now Spring 2022 and Peter would like to sell part or all of his Able stock and reinvest the proceeds in the stock of another small corporation. At present, his total unrealized gain is $300,000. Peter was told by his stockbroker that he may be eligible to exclude part or all of his profit on the sale of the Able shares from current taxable income. What advice on reducing the tax cost of the sale can you give him?

A partial list of research sources is:

• Sec. 1(h)

• Sec. 1045

• Sec. 1202

• Sec. 1244