Multiple Choice
George (an 80% shareholder) has made loans to Mountainview Corporation that become worthless in the current year. George is not employed by Mountainview.
A) George is not permitted a deduction for the worthless loans.
B) The loans provide a nonbusiness bad debt deduction to George in the current year.
C) The loans provide George with a business bad debt deduction.
D) George may claim an ordinary loss as to the worthless loans.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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