Laura Cosgrove, who is single, sells Section 1244 stock for $10,000. In exchange for the stock, she paid $20,000 in cash and transferred property with a fair market value of $25,000 (and an adjusted basis of $30,000).
Years later, she contributed an additional $20,000 to the corporation to try to help the corporation get through some trying times.
How much of her loss may she deduct as an ordinary loss?