On June 1, 2019, Brady Purchased an Option to Buy

question 67

Multiple Choice

On June 1, 2019, 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, 2019.On his 2019 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 these.

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Definitions:

Bed Linens

Textile products such as sheets, pillowcases, and blankets used to cover a bed.

Nighttime Medication Regimen

A specific schedule of drugs administered during the evening or night hours, often designed to align with the body's natural rhythms or to manage symptoms that worsen at night.

Cereal and Milk

A common breakfast comprised of grains, typically processed or whole, served with milk often fortified with vitamins and minerals.

Bedtime Snack

A light meal or food item eaten shortly before going to bed.