Section 1244 applies to losses, but not gains, resulting from the sale or exchange of § 1244 stock; therefore, any gain on the disposition of such stock held for investment is subject to capital gain treatment.

Question

Quizplus · Accepted Answer

Section 1244 only applies to losses, not gains, meaning that any gain on the sale or exchange of § 1244 stock is subject to capital gain treatment.

Section 1244 Applies to Losses, but Not Gains, Resulting from the Sale