By treating the loss from a worthless security as having occ

By treating the loss from a worthless security as having occurred on the last day of the taxable year in which the security becomes worthless, the loss might be classified as a long-term loss rather than a short-term loss.

True

False

Solution

True

Because it deemed to be sold on the last day of the taxable year. If the date of worthlessness would have been used then it would have been treated as a short term loss.