Jim loaned his friend Sam $8,000 several years ago. During the current year, Sam declared bankruptcy and Jim was paid $1,000. For the current year, Jim has salary of $80,000, long-term capital gains of $15,000, and lont-term capital losses of $12,000. What amount of net loss on his loan to Sam may Jim deduct for the current year?

A) $0

B) $3,000

C) $6,000

D) $7,000

E) None of the above