Contributor transferred $50,000 to his newly formed corporation in exchange for § 1244 stock.During the year, he gave some of the stock to his son who will someday own the entire business.The stock qualifies as § 1244 stock in the son's hands.

Question

Quizplus · Accepted Answer

Section 1244 stock retains its status only in the hands of the original holder who acquired it directly from the corporation in exchange for money or property.

Contributor Transferred $50,000 to His Newly Formed Corporation in Exchange