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 realized a $1,800 loss for tax purposes this year.

Question

Quizplus · Accepted Answer

A realized loss occurs only when the asset is sold. Since Brad still holds the shares, the loss is not realized for tax purposes.

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