### Question
What does section 1244 stock mean?


### Answer
**Section 1244 stock** has the following meaning in *26 U.S.C. § 1244*:

> stock in a domestic corporation if—


(A) at the time such stock is issued, such corporation was a small business corporation,


(B) such stock was issued by such corporation for money or other property (other than stock and securities), and


(C) such corporation, during the period of its 5 most recent taxable years ending before the date the loss on such stock was sustained, derived more than 50 percent of its aggregate gross receipts from sources other than royalties, rents, dividends, interests, annuities, and sales or exchanges of stocks or securities

#### Citation:
  - *26 U.S.C. § 1244*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

