Lana owns 50 shares of stock qualifying as Section 1244 stock. If she sells the stock to George, he can also treat the stock as Section 1244 stock.

Question

Quizplus · Accepted Answer

Section 1244 stock treatment applies to the original owner of the stock who acquired it from the corporation. When the stock is sold to another individual, like George, it loses its Section 1244 status for him.

Lana Owns 50 Shares of Stock Qualifying as Section 1244