Question: On June 1 , 2 0 2 1 , Brady purchased an option to buy 1 , 0 0 0 shares of General, Inc. at

On June

1, 2021,

Brady purchased an option to buy

1, 000

shares of General, Inc. at $

40

per share. He purchased the option for $

3, 000 .

It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Brady decided to let the option lapse as of December

1, 2021 .

On his

2021

tax return, what should Brady report

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