In determining whether a debt is a business or nonbusiness bad debt, the debtor's use of the borrowed funds is important.

Name: In determining whether a debt is a business or nonbusiness bad debt, the debtor's use of the borrowed funds is important.
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The classification of a debt as a business or nonbusiness bad debt depends on the lender's relationship to the debt, not the debtor's use of the funds.

In Determining Whether a Debt Is a Business or Nonbusiness