In 2012, Peter Purchased 150 shares of Able Manufacturing Corporation stock for $75,000. Able is a C

In 2012, Peter Purchased 150 shares of Able Manufacturing Corporation stock for $75,000. Able is a C corporation that has 40 shareholders. none of the other 39 shareholders own more that 5% of the 5000 shares outstanding. No event have occurred that have changed either the number of shares of the stock Peter owns. or Peter’s total basis in his shares. Peter is unhappy with Able’s current management team. It is now spring of 2015 and Peter would like to sell part or all of his Able’s stock and reinvest the proceeds ,from the sale, in stock of another small corporation. at present, his total unrealized gain is $300,000. Peter was told by his stockbroker that he might be eligible to exclude part or all of the profit on the sale of the Able shares from his current taxable income. What advice would you give him on the sale of the Able stock.Include relevant cases, code sections or regulations that will support your position ( a minimum of 4 “items” are required for this exercise)

 

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