How can treat this loss in the wheat's income taxtation ?
On 11/9/11, the Wheat's sold 3,000 shares of Smith Pharmaceuticals for $5,000. The stock was purchased by them on 12/4/09 for $25,000. The investment was motivated by a rumor that a specialty drug was about to receive FDA approval. When the approval was not received, the Wheat's decided to cut their losses.