Ira, a calendar year taxpayer, purchases as an investment stock in Redbird Corporation on November 3, 2017. On February 2, 2018, Redbird Corporation is declared bankrupt, and Ira's stock becomes worthless. Presuming § 1244 (stock in a small business corporation) does not apply, Ira has a short-term capital loss for 2018.

Question

Quizplus · Accepted Answer

Ira has a long-term capital loss for 2018 because the stock was held for more than one year before it became worthless.

Ira, a Calendar Year Taxpayer, Purchases as an Investment Stock