does not exceed $1,000,000. The determination under the preceding sentence shall be made as of the time of the issuance of the stock in question but shall include amounts received for such stock and for all stock theretofore issued. theretofore = previously
reg 1.1244(c) - 1(b)
An increase in the basis of outstanding stock as a result of a contribution to capital is not treated as an issuance of stock under section 1244.
so 1000 shares issued for $500,000 then another 1000 shares issued for $500,000 ok it at the max all 1244 stock
so 1000 shares issued for $500,000 then stockholder contributes another $500,000 but no new stock only the original $500,000 qualifies as 1244 based on the reg.
nothing in the code or regs say that the $1M can be replenished due to losses.
