CPA practice questions and answers
In the current year, Fitz, a single taxpayer, sustained a $48,000 loss on Code Sec. 1244 stock in JJJ Corp., a qualifying small business corporation, and a $20,000 loss on Code Sec. 1244 stock in MMM Corp., another qualifying small business corporation. What is the maximum amount of loss that Fitz can deduct for the current year?
(A)$50,000 capital loss
(B)$68,000 capital loss
(C)$18,000 ordinary loss and $50,000 capital loss
(D)$50,000 ordinary loss and $18,000 capital loss
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