Eight months after Noah died, Audrey sold 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

Quizplus · Accepted Answer

The gain or loss on inherited property is considered long-term regardless of how long the inheritor held the property. Since Audrey sold the stock she inherited from Noah, any loss is considered a long-term capital loss, not short-term, because it is based on the value from the date of Noah's death.

Eight Months After Noah Died, Audrey Sold Stock That She