Question;Suzanne is married and is the sole owner of Laidlaw Corporation. When the corporation was established in 1999, she received 10,000 shares of qualified small business stock in exchange for her $100,000 investment. On four occasions, Suzanne made loans totaling $50,000 to the corporation when it had trouble paying its bills. In March 2010, Suzanne cancels the $50,000 debt and receives 5,000 shares of qualified small business stock. In May, she sells her stock in the corporation for $60,000. Is Suzanne allowed ordinary loss treatment on the sale of her small business stock? Explain.
Paper#42973 | Written in 18-Jul-2015Price : $22