During 2017, Virginia, an Architect, Made a Bona Fide $7,500

During 2017, Virginia, an architect, made a bona fide $7,500 loan to her friend Joe when he was in a time of need. Joe died in 2018. Virginia has been informed by Joe's estate that he was insolvent. Virginia should record the nonpayment of the loan as

A) An ordinary loss.
B) An itemized deduction.
C) A short-term capital loss.
D) A long-term capital loss.
E) Nothing. It cannot be deducted.

Correct Answer:

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