Four years ago, Travis, a single taxpayer, acquired stock in a corporation that qualified as a...

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Accounting

Four years ago, Travis, a single taxpayer, acquired stock in acorporation that qualified as a small business corporation under §1244, at a cost of $60,000. Travis wants to give his son, Jaden,$20,000 to help finance Jaden’s college education. The stock iscurrently worth $20,000. Travis is considering selling the stock inthe current year for $20,000 and giving the cash to Jaden. As analternative, Travis could give the stock to Jaden and let Jadensell it for $20,000. Which alternative should Travis choose?

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4.2 Ratings (696 Votes)

Alternative 1 Any individual can claim 50000 as the loss under Sec 1244any excess over 50000 will be treated as capital loss Total loss 60000 20000 40000 For tax See Answer

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