Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

Exercise 70

Tony, a gardener, loaned Harry, his friend, his new $500 lawn mower. Harry ruined the lawn mower, but replaced it with a $425 model. Later in the same year, Tony loaned Harry $5,000 for bail, $3,000 to start a fencing operation, and $15 for a meal. According to Harry's parole officer, none of these items will ever be paid back. Can Tony deduct any of these losses