Sita loans her next-door neighbor, Ivan, $800 to pay his rent and cover his utilities for last month. Ivan promises Sita he will repay her at the end of next month when he receives his next payroll check. Two weeks after loaning Ivan the money, Sita discovers Ivan had left town. No one knows his whereabouts. Sita is told that Ivan also hasn't paid his rent or utility bills. Discuss whether Sita can deduct the $800. Completely explain your reasoning.

Question

Quizplus · Accepted Answer

The Answer of Sita loans her next-door neighbor, Ivan, $800 to pay his rent and cover his utilities for last month. Ivan promises Sita he will repay her at the end of next month when he receives his next payroll check. Two weeks after loaning Ivan the money, Sita discovers Ivan had left town. No one knows his whereabouts. Sita is told that Ivan also hasn't paid his rent or utility bills. Discuss whether Sita can deduct the $800. Completely explain your reasoning.

Sita Loans Her Next-Door Neighbor, Ivan, $800 to Pay His