How should justin treat the loss relating to this debt, Ask an Expert

Accounting

In 2007, Justin (a single taxpayer) loaned $20,000 to his friend Anthony. In 2013, Anthony declared bankruptcy, with the result that the debt became totally worthless. How should Justin treat the loss relating to this debt (assume that the debt is a nonbusiness debt that is a bona fide debt that arose from a debtor-creditor relationship)?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M946594

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