Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-George regularly invests unneeded business cash in Eli Lilly common stock. He has bought 200 shares of stock on May 1 of each year from 1987 through 2017. Because of an urgent need for cash, he sells 100 shares of the stock at an $850 gain on March 28, 2018. Because the stock is held in a brokerage account, he did not have any paper shares of stock to surrender. He merely told his broker to sell 100 shares.
A)Long-term capital
B)Short-term capital
C)Collectible gain
D)Section 1231
E)Section 1245
F)Section 1250
G)Ordinary income/loss
H)Nontaxable/nondeductible

Question

Quizplus · Accepted Answer

The gain on the sale of the Eli Lilly common stock is considered a long-term capital gain since the shares were held for more than one year before being sold.

Classify the Gain or Loss on Each of George's Assets