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A cash-basis taxpayer made a bona fide, nonbusiness loan to an acquaintance in year 1. At the end of year 2, it is determined that the taxpayer will likely be able to collect only 20% of the principal, and no interest has been or will be collected. How should the loss be treated for tax purposes in year 2
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A cash-basis taxpayer made a bona fide, nonbusiness loan to an acquaintance in year 1. At the end of...
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