This is a technical question that has a fairly simple answer yet must follow a strict set of issuances in order for the owner to take full advantage of the law. In order for a company’s stock to be considered Section 1244 stock, there are certain guidelines which need to be met. In no particular order the criterion is: 1. The business needs to have been incorporated after November 6th, 1978 and the stock issued after June 30th, 1958 2. The original shareholder must have the stock “in-hand” 3. The stock issued must be for money or for property. It can not be for securities, stock or services. 4. It must be from a small business whose total capital contributions do not surpass $1,000,000. 5. The identity which holds the stock can not be a trust, an estate or a corporation. 6. Finally, for the 5 years preceding the loss, the company can not have received 50 or more percent of its revenue from certain, passive sources. However, the business does not have to designate that it is §1244 stock. All the entity has to do is meet
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This note was uploaded on 04/27/2008 for the course ACCT 401 taught by Professor Smith during the Spring '07 term at Liberty.