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Tony Tinker, Single, Sells 3,000 Shares of Section 1244 Stock

Question 99

Multiple Choice

Tony Tinker, single, sells 3,000 shares of Section 1244 stock for $50,000. Tony purchased the stock years ago for $175,000. How is the loss treated on Tony's tax return?


A) $125,000 ordinary loss.
B) $125,000 short-term capital loss.
C) $125,000 long-term capital loss.
D) $50,000 ordinary loss; $75,000 long-term capital loss.
E) $75,000 ordinary loss; $50,000 long-term capital loss.

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