Stock purchased on December 15,2016,which becomes worthless in March 2017,produces a STCL since the holding period is one year or less.

Question

Quizplus · Accepted Answer

If a security that is a capital asset becomes worthless during the year,any loss is treated as a loss from the sale or exchange of a capital asset on the last day of the tax year.Therefore,the holding period in this case is December 15,2016 through December 31,2017 resulting in a LTCL.

Stock Purchased on December 15,2016,which Becomes Worthless in March 2017,produces