Amy,a single individual and sole shareholder of Brown Corporation,sold all of the Brown stock for $30,000.The stock basis was $150,000.Amy had owned the stock for 3 years.Brown Corporation meets the Section 1244 requirements.Amy has

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Since the stock meets the Section 1244 requirements, Amy can take an ordinary loss of up to $50,000 and the remaining loss will be a long-term capital loss. In this case, Amy's ordinary loss is $50,000 and her long-term capital loss is calculated as follows: 
Sale price - basis = $30,000 - $150,000 = ($120,000) 
Since the sale occurred more than one year after Amy acquired the stock, the $120,000 loss is a long-term capital loss. Therefore, Amy has a $50,000 ordinary loss and a $70,000 long-term capital loss.

Amy,a Single Individual and Sole Shareholder of Brown Corporation,sold All