Jeannie purchased 1,000 shares in Course Developers for $10,000 on August 11, 2014. The company went bankrupt on May 11, 2015 with no hope of recovery for the shareholders. On what date is the stock deemed to be worthless and what is the nature of the loss?

Question

Quizplus · Accepted Answer

The stock is deemed worthless at the end of the year in which the company went bankrupt, which is December 31, 2015. Since Jeannie held the stock for more than one year, it is considered a long-term loss.

Jeannie Purchased 1,000 Shares in Course Developers for $10,000 on August