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3 votes
When pheasant corporation was formed under § 351, kristen transferred property (basis of $26,000 and fair market value of $22,500) for § 1244 stock. kristen's basis in the pheasant stock is $26,000. three years later, pheasant corporation goes bankrupt and its stock becomes worthless. kristen, who is single, owned the stock as an investment. kristen's loss is:?

asked
User Gherkins
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7.6k points

1 Answer

7 votes
$22,500 ordinary and $3,500 capital.

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answered
User Plastkort
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9.7k points
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