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1. On April 10, 2023, Lisa purchased an option to buy 2,000 shares of Specific, Inc. at $80 per share. She purchased the option for
1. On April 10, 2023, Lisa purchased an option to buy 2,000 shares of Specific, Inc. at $80 per share. She purchased the option for $5,000. It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Lisa decided to let the option lapse as of September 10, 2023. On her 2023 tax return, what should Lisa report? a. A $5,000 long-term capital loss. b. A $5,000 Sec. 1231. loss. c. A $5,000 short-term capital loss. d. An $11,000 short-term capital loss.
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