It is December 30th and you have stock in Zero Corporation,which you bought on March 1st that has lost $2,000 in value.You have already sold other stock that you bought this year for a gain.From a tax standpoint,what should you do with the Zero stock?
A)Sell it today
B)Sell it on January 2nd next year
C)Wait until after next March 1st and sell it then
D)Keep the stock and hope that it goes up in value

Question

Quizplus · Accepted Answer

Selling the stock today allows you to realize the loss in the current tax year, which can offset the gains from other stock sales, potentially reducing your taxable income.

It Is December 30th and You Have Stock in Zero