Sandi sells 100 shares of Gray Corporation stock on December 4,2016.She inherited the stock from Christine,who died on January 30,2016.The executor of the estate used the primary valuation date.Sandi's holding period for the stock is
A)Long-term.
B)Short-term.
C)Long-term if sold at a gain; short-term if sold at a loss.
D)Short-term if sold at a gain; long-term if sold at a loss.

Question

Quizplus · Accepted Answer

Since Sandi inherited the stock from Christine, the holding period for determining whether the gain or loss is short-term or long-term is based on the date of Christine's death, which is January 30, 2016. Sandi sold the stock on December 4, 2016, which is more than one year after the date of death. Therefore, Sandi's holding period for the stock is long-term.

Sandi Sells 100 Shares of Gray Corporation Stock on December