Question - On July 1, 2014, Brandon purchased an option to buy 1,000 shares of General, Inc. at $30 per share. He purchased the option for $2,000. It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Brandon decided to let the option lapse as of December 1, 2014. On his 2014 tax return, what should Brandon report?
A $2,000 long-term capital loss.
A $2,000 short-term capital loss.
A $2,000 § 1231 loss.
A $2,000 ordinary loss.
None of the above.