Section 1244 Losses

[kpangelinan]

Does anyone know if the corporation has to officially close before the stockholder can claim a loss on the sale of his stock?

[ChEAr$]

Does anyone know if the corporation has to officially close before the stockholder can claim a loss on the sale of his stock?

A stockholder's stock, section 1244 or otherwise, is still valid up until the corporation
in final stockholders' meeting (note; not board of directors) authorizes the dissolution of the corporation. The minutes of this final meeting will contain the date, which may or may not be the date of that meeting.

Final dissolution papers filed with the state are just a formality, unless the corporation somehow "forgot" to hold the final stockholder's meeting and sort of glossed over the formalities.

So to sum up, stock is not worthless until it doesn't exist.