#2 Consider “Section 1244 Stock” for a new business
If you are starting a business and choose to operate as a corporation, investigate the advantage of “Section 1244 Stock.” There are requirements that must be met, but if your stock qualities and your business later fails, you can deduct up to $50,000 of the loss against ordinary income each year ($100,000 on a joint return). Without the section 1244 benefit, the entire loss would be subject to the capital loss limitations.