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Section 1244 Stock Loss Calculator$50,000 and $100,000 Ordinary Loss

What do these figures come to once the work is shown?

Ordinary loss on small business stock up to $50,000 or $100,000, and the capital loss left over with its $3,000 limit.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Ordinary loss
$50,000
Deductible against any income
Capital loss portion
$30,000
Capital loss deductible this year
$8,000
Against capital gains plus the $3,000 ($1,500 separate) limit
Drawn to one scale
Ordinary loss$50,000
Capital loss portion$30,000
Capital loss deductible this year$8,000
Capital loss carried forward$22,000
All results
MeasureResult
Ordinary loss$50,000
Capital loss portion$30,000
Capital loss deductible this year
Against capital gains plus the $3,000 ($1,500 separate) limit
$8,000
Capital loss carried forward$22,000
How this was worked out
Work shownrecomputed as you type
Ordinary loss = lesser of the loss and $50,000 ($100,000 on a joint return)
Capital loss portion = loss - ordinary loss
Deductible capital loss = lesser of that portion and (capital gains + $3,000, or $1,500 if married filing separately)

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Ordinary loss = lesser of the loss and $50,000 ($100,000 on a joint return)
  • Capital loss portion = loss - ordinary loss
  • Deductible capital loss = lesser of that portion and (capital gains + $3,000, or $1,500 if married filing separately)

How it works

Section 1244 treats a loss on qualifying small business stock as ordinary rather than capital, up to $50,000 a year, or $100,000 for spouses filing jointly. Any excess is a capital loss. The stock must have been issued for money or property to the individual or partnership claiming the loss.

The issuing corporation must be a domestic small business corporation, meaning its capital receipts including paid-in surplus did not exceed $1,000,000 when the stock was issued, and it must meet a gross receipts test. This tool assumes the stock qualifies and does not test those conditions.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Who can claim it?

Individuals and partnerships that were the original holders. Under section 1244(d)(4) a trust or estate is not an individual for this purpose.

Does the excess carry forward?

The capital part follows section 1211 and 1212. This tool shows the remainder as a carryforward.

Can one spouse claim more on a joint return?

The $100,000 limit applies to the couple filing jointly.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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