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In 1987, Geraldine Mixner went to work in her family's closely held corporation. She was given 1,000 shares of stock purely as an incentive for
In 1987, Geraldine Mixner went to work in her family's closely held corporation. She was given 1,000 shares of stock purely as an incentive for her to stick with the business. This year, the corporation redeems all of Geraldine's shares, yielding her a substantial gain. If Geraldine severs all ties with the corporation and does not reacquire shares in the entity, how will the sale be reported on her tax return?
A.Long-term capital gain
B.Ordinary income
C.Section 1250 gain
D.Short-term capital gain
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