Finanse publiczne · 15.11.1994

Losses on Small Business Stock

This document proposes amendments to regulations under section 1244 relating to losses on small business stock. In particular, the amendment concerns the records to be kept and information to be filed with the return. Section 1244(a) permits an individual to treat a limited amount of loss on certain small business corporation stock as ordinary loss. The existing regulation requires that a taxpayer claiming an ordinary loss on small business stock shall maintain certain information and file an information statement with the taxpayer's return for the year in which the loss occurs. The proposed amendment would remove the requirement that a taxpayer claiming a section 1244 ordinary loss file an information statement with the taxpayer's income tax return.