Multiple Choice
On June 1, 2017, Brady purchased an option to buy 1,000 shares of General, Inc. at $40 per share. He purchased the option for $3,000. It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Brady decided to let the option lapse as of December 1, 2017. On his 2017 tax return, what should Brady report?
A) A $3,000 long-term capital loss.
B) A $3,000 short-term capital loss.
C) A $3,000 § 1231 loss.
D) A $3,000 ordinary loss.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: Samuel, head of household with two dependents,
Q18: Mike is a self-employed TV technician. He
Q22: Hank inherited Green stock from his mother
Q24: Robin Corporation has ordinary income from operations
Q25: Violet, Inc., has a 2017 $80,000 long-term
Q26: A lease cancellation payment received by a
Q26: On January 18, 2016, Martha purchased 200
Q57: To compute the holding period, start counting
Q68: The tax law requires that capital gains
Q126: For tax purposes, there is no original