During 2016,Wendy,a biologist,made a bona fide $10,000 loan to her friend Ben when he was in a time of need.Ben dies in 2017.Wendy has been informed by Ben's estate that creditors can expect to receive 40% of amounts owed to them.No payments to creditors are made from Ben's estate in 2017.Wendy's maximum deduction in 2017 is

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Wendy's maximum deduction in 2017 is $0 because the debt is not considered worthless until the estate is settled and the creditors receive their 40% payment.

During 2016,Wendy,a Biologist,made a Bona Fide $10,000 Loan to Her