Early in the current year, Keith meets Dan through a business associate. Dan tells Keith that he is directing a business venture that purchases poorly managed restaurants in order to turn them around and make them profitable. Dan mentions that he is currently involved in acquiring a real "gold mine", but needs to raise additional cash in order to purchase it$.$ On the strength of Dan's representations, Keith loans Dan $$30,000$ for the venture. An agreement is written up between Keith and Dan, wherein Dan agrees to repay Keith the entire amount over a $5-$ year period plus $14\%$ interest per annum on the unpaid balance. Later in the year, however, Keith discovers that Dan had never intended to purchase the restaurant and, in fact, had used most of the money for his own benefit. Upon making this discovery, Keith sues Dan for recovery of the money, alleging that Dan falsely, fraudulently, and deceitfully represented that the money would be invested and repaid, in order to cheat and defraud Keith out of his money. Unfortunately for Keith, he is never able to recover any amount of the loan.Discuss the tax treatment that Keith may claim with regard to the loss.A partial list of research sources is:Robert S$.$ Gertsell, $46$ T$.$C$.161(1966)$Michele Monteleone, $34$ T$.$C$.688(1960)$