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I'm looking for help solving part B the second half of the question. Jessica-Anne is in the 32% tax bracket. She acquired 5,000 shares of
I'm looking for help solving part B the second half of the question.
Jessica-Anne is in the 32% tax bracket. She acquired 5,000 shares of stock in Heritage Corporation two years ago at a cost of $200 per share. In the current year, Jessica-Anne received a payment of $840,000 from Heritage Corporation in exchange for 4,000 of her shares in Heritage. Heritage has E \& P of $810,000. Jessica-Anne has a capital loss carryover of $50,000 in the current tax year. Assume that Jessica-Anne has no capital losses and taxpayers in the 32% tax bracket are subject to the long-term capital gains and qualified dividends tax rate of 15%. What amount of the capital loss may Jessica-Anne deduct in the current year in the following situations? If an amount is zero, enter "0". a. The $840,000 payment from Heritage Corporation is a qualifying stock redemption for tax purposes. Jessica-Anne may use $ of the capital loss carryover to offset the gain on the redemption. Her income tax liability is $ Feedback Check My Work b. The $840,000 payment from Heritage Corporation does not qualify as a stock redemption for tax purposes. Jessica-Anne could deduct $ of the $50,000 capital loss carryover. Her income tax liability is $Step by Step Solution
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