Question: Two years ago, Ms. X loaned $3,500 to her 20-year-old daughter, who used the loan proceeds to buy a used car. This year, the daughter

Two years ago, Ms. X loaned $3,500 to her 20-year-old daughter, who used the loan proceeds to buy a used car. This year, the daughter informed her mother that she could not repay the debt.

Identify the tax issue or issues suggested by the above situations, and state each issue in the form of a question.

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