Question

Section 1202 provides that owners of qualified small business stock that is sold during 2019 and has been held for at least five years can exclude up to _______ percent of the gain from taxation depending on the acquisition date.

A) 50%
B) 75%
C) 100%
D) 25%

Answer 1

Section 1202 provides that owners of qualified small business stock that is sold during 2019 and has been held for at least five years can exclude up to 100% of the gain from taxation depending on the acquisition date.

Step-by-step explanation:

Section 1202 provides that owners of qualified small business stock that is sold during 2019 and has been held for at least five years can exclude up to 100% of the gain from taxation depending on the acquisition date. This means that if the stock meets the qualification criteria and is sold after being held for at least five years, the entire gain can be excluded from taxation.

For example, if an individual bought qualified small business stock in 2014 and sells it in 2019, they can exclude 100% of the gain from taxation. However, it's important to note that the exclusion percentage may vary depending on the acquisition date, so it's crucial to refer to Section 1202 for the specific details.