Section 1244 Stock Law and Legal Definition
Section 1244 stock is a classification on investments used when filing a capital loss on personal taxes with the Internal Revenue Service (IRS). It allows the shareholders to treat up to $50,000 of losses ($100,000 if married and filing jointly) from the sale of the stock as ordinary losses instead of capital losses. Usually, there is a $3,000 US Dollars (USD) limit on losses that can be counted against personal income.