Stock purchased on December 15,2015,which becomes worthless in March 2016,produces a STCL since the holding period is one year or less.

Name: Stock purchased on December 15,2015,which becomes worthless in March 2016,produces a STCL since the holding period is one year or less.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The holding period is not one year or less, as it spans across two tax years (2015 and 2016). Therefore, it would produce a long-term capital loss (LTCL) if it became worthless in March 2016.

Stock Purchased on December 15,2015,which Becomes Worthless in March 2016,produces