In 2018, Susan Christian transferred a machine with a fair market value of $30,000 and an adjusted basis of $40,000 to JPC Corporation in return for 60 shares of stock. The stock qualified as Code Sec. 1244 stock and the transfer qualified under code Code Sec. 351. In 2020, JPC Corporation liquidated due to bankruptcy, and Susan's stock became worthless. What is Susan's tax position in 2020?

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In 2020 when JPC Corporation liquidated and Susans stock became worthless she may have a tax loss Th... View the full answer