Bob, an employee of Modern Corp., receives a fringe benefit (in lieu of a salary increase) of $100. Bob is in a 33% tax bracket. The fringe benefit is nontaxable to Bob and is not deductible as an itemized deduction. Bob's after-tax savings from receiving the tax-free benefit is

Bob, an employee of Modern Corp., receives a fringe benefit (in lieu of a salary increase) of $100. Bob is in a 33% tax bracket. The fringe benefit is nontaxable to Bob and is not deductible as an itemized deduction. Bob's after-tax savings from receiving the tax-free benefit is

A) $0.
B) $33.
C) $67.
D) $100.



Answer: B

In September of 2011, Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for 7 months. Forty-five days after the sale she purchased other qualified small business stock for $1,100,000. What is the basis in the new stock she purchased?

In September of 2011, Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for 7 months. Forty-five days after the sale she purchased other qualified small business stock for $1,100,000. What is the basis in the new stock she purchased?

A) $200,000
B) $300,000
C) $800,000
D) $1,100,000



Answer: B

In September of 2011, Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for 7 months. Forty-five days after the sale she purchased other qualified small business stock for $1,100,000. How much of the gain will she recognize?

In September of 2011, Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for 7 months. Forty-five days after the sale she purchased other qualified small business stock for $1,100,000. How much of the gain will she recognize?

A) $ -0-
B) $100,000
C) $800,000
D) $900,000



Answer: A

This year, Jason sold some qualified small business stock that he acquired in 2004. His basis in the stock was $95,000 and he sold it for a $30,000 gain. How much of Jason's gain is taxable?

This year, Jason sold some qualified small business stock that he acquired in 2004. His basis in the stock was $95,000 and he sold it for a $30,000 gain. How much of Jason's gain is taxable?

A) $-0-
B) $15,000
C) $30,000
D) $47,500


Answer: B