Business, 23.01.2020 18:31 sleimanabir
An individual acquired 500 shares of stock on december 20, year 1, for a personal portfolio. on march 15, year 2, the individual executed a short sale of 500 shares of the stock. on december 21, year 2, the individual delivered the 500 shares to cover the short sale. which of the following statements best characterizes the gain or loss on the short sale?
1 the transaction will be treated as ordinary income because of the march short sale.
2 the transaction will be treated as a long-term capital asset sale.
3 the transaction will be treated as a 40% short-term/60% long-term capital asset sale.
4 the transaction will be treated as a short-term capital asset sale.
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An individual acquired 500 shares of stock on december 20, year 1, for a personal portfolio. on marc...
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