J purchased stock in X Corporation from C, one of the original shareholders.In C's hands, the shares were § 1244 stock.The stock will also be § 1244 stock to J.Both J and C are individuals.

Question

Quizplus · Accepted Answer

Section 1244 stock retains its status only for the original shareholder who acquired it directly from the corporation, not for subsequent purchasers like J.

J Purchased Stock in X Corporation from C, One of the Original