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Level 1
posted Feb 24, 2025 8:07:37 PM

Where do I report capital losses from a C corp that has dissolved?

Where do I report capital losses from a C corp that has dissolved?

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1 Replies
Level 15
Feb 24, 2025 8:13:22 PM

there can be an issue. it depends on whether the stock you hold in the C-corp is section 1244 stock because it allows an ordinary loss deduction of up to $50K ($100K if filing a joint return) rather than a capital loss

Code section 1244

https://www.law.cornell.edu/uscode/text/26/1244