Loren loaned a friend $9,000 as financing for a new business venture. In the current year, Lorens
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Loren loaned a friend $9,000 as financing for a new business venture. In the current year, Loren’s friend declares bankruptcy and the debt is considered totally worthless. What amount may Loren deduct on his individual income tax return for the current year as a result of the worthless debt, assuming he has no other capital gains or losses for the year?
a. $9,000 ordinary loss
b. $9,000 shortterm capital loss
c. $3,000 shortterm capital loss
d. $3,000 ordinary loss
e. $6,000 shortterm capital loss
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Related Book For
Income Tax Fundamentals 2023
ISBN: 9780357719527
41st Edition
Authors: Gerald E. Whittenburg, Steven Gill
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