Steinar loaned a friend $9,500 to buy some stock 3 years ago. In the current year the debt became worthless.

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a. How much is Steinar's deduction for the bad debt for this year? (Assume he has no other capital gains or losses.) $fill in the blank b3335bf6f07007d_1 as a

businessnonbusinessnonbusiness

bad debt.

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b. What can Steinar do with the deduction not used this year?

The remaining $fill in the blank 751cf4011fbafd7_1 can be carried forward as a

long term lossshort term lossshort term loss

and deducted in future years, subject to

an annual limitationno further limitationan annual limitation

.

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