Jackson, a single individual, inherited Bean Corp. Common stock from Jackson's parents. Bean is a qualified small business corporation under Code Sec. 1244. The stock cost Jackson's parents $20,000 and had a fair market value of $25,000 at the parents' date of death. During the current year, Bean declared bankruptcy and Jackson was informed that the stock was worthless. What amount may Jackson deduct as an ordinary loss in the current year?
a. $0
b. $3,000
c. $20,000
d. $25,000
Answer: A
Tax
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- Income in respect of a cash-basis decedent
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