Beth in Case Study Problem I:16-76 also wants to know whether she can make a $50,000 capital contribution to the corporation without the corporation’s issuing additional shares. If so, should she have the corporation issue the shares or not? Assume that Beth’s basis in her stock is $40,000 and that she files a joint return with her husband.
A partial list of research sources is:
• Sec. 1244(d)(1)(B)
• Reg. Secs. 1.1244(c)-1(b) and 1.1244(d)-2(a)
• Sol Lessinger v. CIR, 63 AFTR 2d 89-1055, 89-1 USTC ¶9254 (2nd Cir., 1989)
• James D. Pierce, 1989 PH T.C. Memo ¶89,647, 58 TCM 865 (1989).