Daniel is considering selling two stocks that have not

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Daniel is considering selling two stocks that have not fared well over current years. A friend freshly informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $50,000 on this stock as an ordinary loss rather than typical capital loss. Daniel figures that he has a loss of $60,000 on every stock. If Daniel's marginal tax rate is 35 % and he has $120,000 of other capital gains (taxed at 15 %), evaluate the tax savings from the special tax treatment?

Reference no: EM13370690

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