Stock purchased on December 15,2013,which becomes worthless in March 2014 produces a STCL since the holding period is one year or less.

Question

Quizplus · Accepted Answer

The holding period for the stock is not one year or less as it was purchased on December 15, 2013, and became worthless in March 2014 which is more than one year. Therefore, it would produce a long-term capital loss instead of a short-term capital loss.

Stock Purchased on December 15,2013,which Becomes Worthless in March 2014