When to claim sec 1244 stock loss? date of dissolution with Secretary of State? - Spidell

When to claim sec 1244 stock loss? date of dissolution with Secretary of State?

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Message Board When to claim sec 1244 stock loss? date of dissolution with Secretary of State?

  • This topic has 1 reply, 2 voices, and was last updated 1 week ago by William Dewberry.
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    • #267248
      Anonymous
      Member

      Which year should a section 1244 stock loss be claimed on individual’s tax return?

      Date S-Corp completed distribution of all assets and filed final tax return tax year 2016?

      or

      California Secretary of State Certificate : Date of Dissolution: stamped 4/20/2018?

      No business activity for 2017 and 2018.

       

    • #267326
      William Dewberry
      Participant

      The technical answer is the year the stock became worthless, but that can be hard to determine. Date of dissolution has no bearing so scratch that one. If you read court cases the IRS will disagree with taxpayer as to the correct year, sometimes they say too early, sometimes they say too late. If they say it occurred in a prior year, and the statute has closed, deduction lost. But If assets were distributed in a year, that sounds like a capital loss on a sale, since proceeds were received, is that correct ? Worthless stock means no proceeds of any kind.

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