Suzanne is married and the sole owner of Laidlaw Corporation. When the corporation was established in 2000,

Question:

Suzanne is married and the sole owner of Laidlaw Corporation. When the corporation was established in 2000, she received 10,000 shares of qualified small business stock in exchange for her $100,000 investment. On four occasions, Suzanne made loans totaling $50,000 to the corporation when it had trouble paying its bills. In March 2011, Suzanne cancels the debt of $50,000 and receives 5,000 shares of qualified small business stock. In May, she sells all her stock in the corporation. Is Suzanne allowed ordinary loss treatment on the sale of her small business stock?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...