Mason is an original shareholder of 1,000 shares of Section 1244 stock in Miles Corporation that he
Question:
Mason is an original shareholder of 1,000 shares of Section 1244 stock in Miles Corporation that he acquired four years ago. He has a basis of $65,000 in the stock. The stock has significantly declined in value so he sells it in the current year for $5,000. Identify the amount and type of gain or loss that Mason has on this sale.
a. $50,000 ordinary loss and a $10,000 capital loss
b. $60,000 capital loss
c. $53,000 ordinary loss and a $12,000 capital loss
d. $60,000 ordinary loss.
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Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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