Sarah had a $30,000 loss on Section 1244 stock,a $15,000 loss on sale of a personal use automobile and a $8,000 loss on stock that is not classified as Section 1244.Without regard to net capital loss limitations,Sarah should recognize

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The Section 1244 stock will result in an ordinary loss of $30,000. The sale of the personal use automobile will result in a nondeductible personal loss of $15,000. The loss on the other stock that is not Section 1244 will result in a capital loss of $8,000. Therefore, the total loss recognized will be an ordinary loss of $30,000 and a capital loss of $8,000.

Sarah Had a $30,000 Loss on Section 1244 Stock,a $15,000