A worthless security had a holding period of 10 months when it became worthless

Question

A worthless security had a holding period of 10 months when it became worthless on November 10, 2011. The investor who had owned the security had a basis of $10,000 for it. Which of the following statements is correct? Answer
a. The investor has a long-term capital loss of $10,000.
b. The investor has a short-term capital loss of $10,000.
c. The investor has a nondeductible loss of $10,000
d. The investor has a long-term capital gain of $10,000.
e. None of the above. A worthless security had a holding period of 10 months when it became worthless on November 10, 2011. The investor who had owned the security had a basis of $10,000 for it. Which of the following statements is correct? A worthless security had a holding period of 10 months when it became worthless on November 10, 2011. The investor who had owned the security had a basis of $10,000 for it. Which of the following statements is correct? The investor has a long-term capital loss of $10,000. The investor has a short-term capital loss of $10,000. The investor has a nondeductible loss of $10,000 The investor has a long-term capital gain of $10,000. None of the above.
a. The investor has a long-term capital loss of $10,000.
b. The investor has a short-term capital loss of $10,000.
c. The investor has a nondeductible loss of $10,000
d. The investor has a long-term capital gain of $10,000.
e. None of the above.

Explanation / Answer

The investor has a nondeductible loss of $10,000 c. The investor has a nondeductible loss of $10,000

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