Dan, a full-time employee of Beta, Inc., also owns 10% of its outstanding stock. The other 90% is owned by his three brothers. During the year, the president of Beta came to Dan, expressing grave concern about whether the company had the financial resources to remain in business. He mentioned specifically that a bank was threatening to force Beta to file bankruptcy if it didn’t repay its $100,000 loan in full. After some negotiation, Dan agreed to loan Beta the $100,000 for one year until permanent financing could be obtained. A reasonable interest rate was set and a payment schedule was documented. Unfortunately, business did not improve, and Beta discontinued its business and did not repay the loan. What tax issues should Dan consider?