Eleanor, a single taxpayer, purchased 12,000 shares of § 1244 stock six years ago at a cost of $18 per share. In December of the current year, she received an offer to sell the stock for $11 per share. She has the option of either selling all of the stock now or selling half of the stock now and half of the stock early next year. Eleanor will receive a salary of $90,000 for the current year and $95,000 next year. She will have long-term capital gains of $7,000 for the current year and $11,000 next year.Assume that Eleanors goal is to minimize her AGI for the next two years. Recommend whether she should sell all of her stock this year or half of her stock this year and half next year. To support your recommendation, please provide the result of both alternatives.
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