Skip to content
Warren AI
Sign in
Income Tax Planning
Chapter 8: Other Deductions, Penalties, and Loss Disallowance/WORTHLESS SECURITIES: EXAMPLE
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 8: Other Deductions, Penalties, and Loss Disallowance

WORTHLESS SECURITIES: EXAMPLE

01.Core Concepts

• On December 1, 2025, Sharna purchased stock for $10,000. The stock became worthless on June 1, 2026. • Sharna is treated as having sold the stock on December 31, 2026. The result is a long-term capital loss.