Which of the following statements about Section 1244 stock is true?

Question

Quizplus · Accepted Answer

Section 1244 stock is a special type of stock issued by a small business corporation. If the stock meets certain requirements and is sold at a loss, the loss can be treated as an ordinary loss up to a certain limit for individual taxpayers. Thus, option A is true. Option B is incorrect because gain on sale of Section 1244 stock is taxed as a capital gain. Option C is also incorrect because individuals may purchase Section 1244 stock only directly from the issuing corporation and not from another shareholder. Option D is incorrect because there are limits on the amount of Section 1244 stock that can be issued by a corporation.

Which of the Following Statements About Section 1244 Stock Is