It is not beneficial for an S corporation to issue § 1244 stock.

Question

Quizplus · Accepted Answer

It can be beneficial for an S corporation to issue § 1244 stock because it allows shareholders to claim a tax deduction for losses incurred from selling the stock, which can help offset the tax burden on other income. However, not all S corporations may be eligible to issue § 1244 stock, and it is important to consult with a tax professional before making any decisions about issuing this type of stock.

It Is Not Beneficial for an S Corporation to Issue