Your client loaned someone $10,000 in 2016. The loan had a contract, a set payment schedule, and a set interest rate. In 2021 the loan had an outstanding balance of $1,500. The loan was listed in a bankruptcy and forgiven. There can be no further collection attempts to obtain the remaining amount. What can your client list on their tax return in 2021?

		Nothing, no loss is allowed
		$1,500 short-term capital loss
		$1,500 long-term capital loss
		$1,500 ordinary loss