Four years ago, Mrs. Beights purchased marketable securities for $75,000 cash. At the end of 2011, the FMV of the securities had plummeted to $4,000. Mrs. Beights may elect to recognize her $71,000 loss in 2011, even though she still owns the securities.

Question

Quizplus · Accepted Answer

Losses on marketable securities are generally not recognized for tax purposes until the securities are sold or otherwise disposed of.

Four Years Ago, Mrs