several years ago amy westbrook, who is in the lending business, loaned sara stuart $30,000 to purchase an automobile to be used for personal purposes. in august of the current year, sara filed for bankruptcy, after paying back $1,000 of the loan to amy. amy was notified by the bankruptcy court that she could not expect to receive more than an additional $4,000. amy has contacted you about the possibility of taking a bad debt deduction for the current year.

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07-10-2022
Business

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several years ago amy westbrook, who is in the lending business, loaned sara stuart $30,000 to purchase an automobile to be used for personal purposes. in august of the current year, sara filed for bankruptcy, after paying back $1,000 of the loan to amy. amy was notified by the bankruptcy court that she could not expect to receive more than an additional $4,000. amy has contacted you about the possibility of taking a bad debt deduction for the current year.

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