Sonya inherits 1,000 shares of Big Red Airline Corporation stock from the estate of her Uncle Tony.Tony died on August 4,2013.The stock's value on August 4,2013,is $2,000.Tony purchased the stock for $3,000 several years ago.Sonya sells the 1,000 shares for $2,300 on December 8,2013.What is Sonya's holding period of the stock?

Question

Quizplus · Accepted Answer

Sonya's holding period is long-term because she held the stock for more than one year before selling it (from August 4, 2013, to December 8, 2013). The purchase price of the stock and whether estate tax was paid are irrelevant to determining the holding period.

Sonya Inherits 1,000 Shares of Big Red Airline Corporation Stock