Sandi sells 100 shares of Gray Corporation stock on December 4, 2018. She inherited the stock from Christine, who died on January 30, 2018. The executor of the estate used the primary valuation date. Sandi's holding period for the stock is

Question

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The holding period for inherited stock is always considered long-term regardless of how long the decedent held the stock. In this case, since Christine died on January 30, 2018, Sandi inherited the stock with a new cost basis of the fair market value on that date. Since Sandi sold the stock on December 4, 2018, which is more than a year after she inherited the stock, the holding period is considered long-term.

Sandi Sells 100 Shares of Gray Corporation Stock on December