1244 - InternalRevenueCode (a)Generalrule ,...

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Internal Revenue Code   § 1244 Losses on small business stock. (a) General rule.   In the case of an individual, a loss on section 1244 stock issued to such individual or to a  partnership which would (but for this section) be treated as a loss from the sale or  exchange of a capital asset shall, to the extent provided in this section, be treated as an  ordinary loss.  (b) Maximum amount for any taxable year.   For any taxable year the aggregate amount treated by the taxpayer by reason of  this   section  as an ordinary loss shall not exceed—  (1)  $50,000, or  (2)  $100,000, in the case of a husband and wife filing a joint return for such year  under  section 6013  (c)  Section 1244  stock defined.   (1) In general.   For purposes of  this section  , the term “  section 1244  stock” means stock in a  domestic corporation if—  (A) at the time such stock is issued, such corporation was a small  business corporation,  (B) such stock was issued by such corporation for money or other  property (other than stock and securities), and  (C) such corporation, during the period of its 5 most recent taxable years  ending before the date the loss on such stock was sustained, derived  more than 50 percent of its aggregate gross receipts from sources other  than royalties, rents, dividends, interests, annuities, and sales or  exchanges of stocks or securities.  (2) Rules for application of  paragraph (1)(C)  .   (A) Period taken into account with respect to new corporations. For 
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