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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 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
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