On January 1,2013,Brad purchased 100 shares of stock at $4,000.By December 31,2013,the stock had declined in value to $2,200,but Brad still held the shares.For 2013,Brad has recognized a $1,800 loss for tax purposes.

Question

Quizplus · Accepted Answer

Brad has not recognized a loss for tax purposes because he has not sold the shares. A loss is only recognized for tax purposes when the asset is sold or disposed of.

On January 1,2013,Brad Purchased 100 Shares of Stock at $4,000