Rita loaned her brother, Richard, $7,500 on February 14, 2018. e loan represents a bona de loan.
Fantastic news! We've Found the answer you've been seeking!
Question:
Rita loaned her brother, Richard, $7,500 on February 14, 2018. e loan represents a bona fide loan. Richard filed for bankruptcy in 2022, and Rita learned that she could expect to receive only $.70 on the dollar on the personal loan that she had made to him. On May 17, 2023, Rita received a final settlement of $4,000.
a. How much loss can Rita deduct in 2022?
b. How much loss can Rita deduct in 2023?
c. How will this loss be treated on Rita’s tax return?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date: