On January 1 of this year,Brad purchased 100 shares of stock at $4,000.By December 31 of this year,the stock had declined in value to $2,200,but Brad still held the shares.Brad has recognized a $1,800 loss for tax purposes this year.

Question

Quizplus · Accepted Answer

Brad has not recognized a loss for tax purposes because he has not sold the shares. A loss is only recognized for tax purposes when the asset is sold or disposed of.

On January 1 of This Year,Brad Purchased 100 Shares of Stock