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Sonya, who is single, owns 20,000 shares of Malthouse Corporation stock. She acquired the stock in...

Sonya, who is single, owns 20,000 shares of Malthouse Corporation stock. She acquired the stock in 2016 for $75,000. The stock is qualifying small-business stock. On August 12, 2019, Sonya's father tells her of a rumor that Malthouse will file for bankruptcy within the next week. The next day, Sonya sells all her shares of Malthouse for $20,000.

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Answer #1

Loss on sale of Malthouse Corporation stock = $20,000-$75,000 = $55,000

Since Malthouse Corporation stock is a QSBS, Sonya can claim $50,000 loss as ordinary loss.

And Maximum Capital Loss Deduction is $3,000.

So. sonya is eligible to take deduction of loss of $53,000 and remaining 2,000 of the loss is carried forward for subsequent years.

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