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Assuming that all securities listed become worthless during…

Assuming that all securities listed...
Assuming that all securities listed become worthless during the year, which ones produce the most benefit to an individual investing in the corporation during the year of worthlessness?A bond with a basis of $20,000
Debentures with a basis of $20,000
Section 1244 stock purchased from a relative for $20,000
Section 1244 stock with a basis of $20,000
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3/24/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
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Section 1244 stock with a basis of $20,000

The loss will be ordinary, so it doesn't need to worry about capital loss restrictions. The other 1244 doesn't work because it was purchased from a relative. It needs to be purchased from the corporation in order to get the ordinary loss treatment.

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified
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