Eight months after Noah died, Audrey sells stock that she inherited from him. If the stock was sold for less than its value on the date of Noah's death, Audrey has a short-term capital loss.

Question

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If the stock was sold for less than its value on the date of Noah's death, Audrey would have a long-term capital loss. Short-term capital gains or losses apply to assets held for a year or less, while long-term capital gains or losses apply to assets held for more than a year. Since eight months have passed since Noah's death, any gains or losses would be considered long-term.

Eight Months After Noah Died, Audrey Sells Stock That She