A Security That Was Purchased by an Individual and Qualifies

question 54

True/False

A security that was purchased by an individual and qualifies as § 1244 stock becomes worthless.The taxpayer is single and the loss is $30,000.The loss is treated as an ordinary loss.

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Definitions:

Federally Regulated Industries

Industries that operate under the laws and regulations of the federal government, such as telecommunications, transportation, and banking.

Bona Fide Occupational Qualification (BFOQ)

A justifiable reason for discrimination based on business reasons of safety or effectiveness.