Four years ago, Susan loaned $$7,000$ to her friend Joe. During the current year, the $$7,000$ loan is considered worthless. Explain how Susan should treat the worthless debt for tax purposes.

A$.$ The debt is a nonbusiness bad debt; therefore, it is nondeductible.

B$.$ The debt is a nonbusiness bad debt; therefore, the loss is treated as a short$-$term capital loss.

C$.$ The debt is a nonbusiness bad debt; therefore, the loss is treated as a ordinary loss.

D$.$ The debt is a nonbusiness bad debt; therefore, the loss is treated as a long$-$term capital loss.