On May 9, 2019, Calvin acquired 750 shares of stock in Hobbes Corporation, a new startup company,
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Question:
On May 9, 2019, Calvin acquired 750 shares of stock in Hobbes Corporation, a new startup company, for $82,950. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2021, Calvin sold all of his Hobbes stock for $8,295. Assume that Calvin is single.
Assuming that Calvin is single, determine his tax consequences as a result of this sale.
If an amount is zero, enter "0".
As a result of the sale, Calvin has:
| Ordinary loss: | ? |
| Short-term capital loss: | ? |
| Long-term capital loss: | ? |
Expert Answer:
Ordinary loss50000 Because as per section 1244 ordinary loss limit is 50000 ... View the full answer
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