Shareholder A loans $200,000 to Corp X and Corp X fails to repay – regarding the nature of any deduction:

What Code Section will the IRS likely assert §____________

In Part a above, what is the tax result (2 to 5 words) _____________________________

What Code Section will A try to assert §____________

Will A be likely to succeed? (Yes / No) ____________

Why in d above? (2 – 4 sentences)

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In question above, if the funds were the total assets invested in Corp. X stock at inception

What Code Section describes a possible deduction to A? §____________

If A is married filing a joint return what is the maximum deduction available under a. above? ____________

How is the deduction classified? ____________