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Determine justins tax treatment for the loan in current year

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Reference no: EM132380525

Question

Justin had loaned $6,800 to his brother Jeremy in 2014. Jeremy has never made a payment to Justin, nor has Justin attempted to collect from Jeremy. This year, Jeremy filed bankruptcy and told Justin that he would not be able to repay the $6,800 loan. Determine Justin's tax treatment for the loan in the current year - i.e., the year of Jeremy's bankruptcy.

Reference no: EM132380525

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