Since most startups fail, of the tax code allows losses from the sale of small, domestic corporation stock that was sold directly to individual shareholders, to be deducted as ordinary losses up to $50,000 (MFJ $100,000 ), as opposed to treating the loss as a capital loss. The remaining loss will be treated as a capital loss subject to the per year limit. (This question is a repeat from quiz #2). Section 179,$1000 Section 1202,$3,000 Section 1244,$50,000 Section 1244, $3,000