Two years ago, I formed an S corporation. Now I’m done with this business, and I want to write off my $45,000 initial investment. My friend told me that I might do better than just deducting a long-term capital loss. Can you help me do better? (L.M., Long Island, N.Y.)

Yes, you probably can write off your initial investment in S corporation stock as an ordinary loss, using the Section 1244 small-business stock rules.1

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