Four years ago, Mrs. Beights purchased marketable securities for $75,000 cash. At the end of 2012, the FMV of the securities had plummeted to $4,000. Mrs. Beights may elect to recognize her $71,000 loss in 2012, even though she still owns the securities.

Question

Quizplus · Accepted Answer

Mrs. Beights cannot recognize the loss on the securities for tax purposes until she actually sells them. The loss is only realized when the securities are sold or otherwise disposed of.

Four Years Ago, Mrs