[ANSWERED] In 2016, Peter purchased 150 shares of Able Manufacturing Corpo ration stock for $75,000 . Able is a

In 2016, Peter purchased 150 shares of Able Manufacturing
Corpo ration stock for $75,000 . Able is a C corporation that has 40 shareho
lders. None of the other 39 share – holders own more than 5% of the 5,000
shares outstand ing. 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 Abie’s management . It is now Spring 2019 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 tota l
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. l(h)
• Sec. 1202
• Sec. 1044
• Sec. 1045
• Sec. 1244