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Which of the Following Best Describes the Tax Treatment of Losses

Question 47

Multiple Choice

Which of the following best describes the tax treatment of losses from uncollectible business debts?


A) Such losses are not deductible.
B) Such losses are limited to $3,000 per year.
C) Such losses are treated as short-term capital losses.
D) Such losses are deductible without limitation as an ordinary loss.

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