Ira,a calendar year taxpayer,purchases as an investment stock in Redbird Corporation on November 3,2014.On February 2,2015,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 2015.

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Quizplus · Accepted Answer

Ira has a long-term capital loss because the stock was held for more than one year before it became worthless.

Ira,a Calendar Year Taxpayer,purchases as an Investment Stock in Redbird