Ira, a calendar year taxpayer, purchases as an investment stock in Redbird Corporation on November 3, 2018. On February 2, 2019, Redbird Corporation is declared bankrupt, and Ira's stock becomes worthless. Presuming § 1244 (stock in a small business corporation) does not apply, Ira has a short-term capital loss for 2019.

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Ira has a long-term capital loss in 2019 because the stock is considered to have been sold on the last day of the year it became worthless, making the holding period longer than one year.

Ira, a Calendar Year Taxpayer, Purchases as an Investment Stock