Loss treated on the tax return


A single taxpayer sells 3,000 shares of Section 1244 stock ("small business corporation" stock) at a loss of $125,000. How will this loss be treated on the tax return?

a. $125,000 ordinary loss

b. $125,000 capital loss

c. $50,000 ordinary loss and $75,000 capital loss

d. $100,000 ordinary loss and $25,000 capital loss

e. None of the above

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Loss treated on the tax return
Reference No:- TGS038871

Expected delivery within 24 Hours