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Aliun [14]
3 years ago
10

Several years ago, John purchased 2,000 shares of Red Corporation's § 1244 stock from Mark for $40,000. Last year, John sold one

-half of his Red Corporation stock to Mike for $12,000. During the current year, John sold the remaining Red Corporation stock for $3,000. John has a $17,000 ($3,000 – $20,000) ordinary loss for the current year. What's amount of loss can John can deduct for the current year?
Business
1 answer:
irga5000 [103]3 years ago
6 0

$17,000 amount of loss can John can deduct for the current year

Explanation:

Given,

John paid 2,000 worth of Red Corporation's $1244 share

Mark for $40,000

Mike for $12,000

John sold the remaining assets of Red Company for $3,000.

John has a typical risk of $17,000 ($3,000 – $20,000) for the current year.

The given statement is False.

John did not purchase the stock from Red Corporation; thus, he will not have a balance of $1244.

He does have a long-term capital risk of $17,000.

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