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The taxpayer must report a long-term capital gain of $80,000 (the net unrealized appreciation) and a short-term capital gain of $15,000. 1131 per share, 31% represents short-term capital gain distributions and 13% represents long-term capital gain distributions. The gain is calculated as follows: Redemption proceeds from short-term category $300 (20 shares at $15 per share) Basis 280 (20 shares at $14 per share) short-term capital gain $20 Redemption proceeds from long-term category $450. |
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