Nancy Sold Her Section 1202 Stock for $9,000,000 on August

Question 43
Essay

Nancy sold her Section 1202 stock for $9,000,000 on August 7, 2017. She had purchased the stock nine years ago for $1,500,000. She invested $4,500,000 in other qualifying Section 1202 stock. How will Nancy treat the gain on this sale for tax purposes? How would your answer change if the stock is instead sold in 2018?