Question: Three years ago Mrs B loaned 10 000 to Mr J

Three years ago, Mrs. B loaned $10,000 to Mr. J in return for his interest-bearing note. She made the loan to enable him to begin his own business. This year, Mr. J informed Mrs. B that his business had failed and that he was unable to repay the debt. Mrs. B decided not to take legal action to enforce the debt. What are her tax consequences of this bad debt?

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