Hope Springs,a teacher,loaned Hugh Owens,a friend,$10,000 to invest in real estate.Hugh declared bankruptcy in 2017 and cannot repay the $10,000.
a.What is the nature of Hope's loss?
b.Assuming Hope has no other capital transactions,is there a limit on the amount she may deduct for 2017? Explain.
c.What amount of the loss may Hope deduct in 2017?

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The Answer of Hope Springs,a teacher,loaned Hugh Owens,a friend,$10,000 to invest in real estate.Hugh declared bankruptcy in 2017 and cannot repay the $10,000.
a.What is the nature of Hope's loss?
b.Assuming Hope has no other capital transactions,is there a limit on the amount she may deduct for 2017? Explain.
c.What amount of the loss may Hope deduct in 2017?

Hope Springs,a Teacher,loaned Hugh Owens,a Friend,$10,000 to Invest in Real