During 2017, Virginia, an Architect, Made a Bona Fide $7,500

question 48

Multiple Choice

During 2017, Virginia, an architect, made a bona fide $7,500 loan to her friend Joe when he was in a time of need. Joe died in 2018. Virginia has been informed by Joe's estate that he was insolvent. Virginia should record the nonpayment of the loan as

• A)An ordinary loss.
• B)An itemized deduction.
• C)A short-term capital loss.
• D)A long-term capital loss.
• E)Nothing. It cannot be deducted.

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