Bob,

THANK YOU!

Wow, my client meets the requirements of Section 1244.  Went from owing $6,000 to a refund of $26,000. 

In the process of researching and reporting it, I found nothing in the IRS publications.  Proseries has the reporting option buried and I do feel it should be a prompt under the "sale or complete disposition" sheet. 

My client will be thrilled.  As cynical as people can be about the IRS, I did have a feeling that the outcome I had come up with was inequitable and the intent of Congress was not to have a 40 years capital loss carryover ($3,000 per year) for undistributed ordinary income received, taxed and added to his basis.

Thank you and God Bless.  I hope you enjoyed France and Spain.  I am heading to Paris and London in October and hoping the CDC drops the testing.  I am reading about people flying to Canada and driving across the border to avoid the requirement.