Question

Toni, a gardener, lent Harry, his friend, his new $$\$ 500$$ lawn mower. Harry ruined the lawn mower, but replaced it with a $$\$ 425$$ model. Later in the same year, Toni lent Harry $$\$ 5,000$$ for bail, $$\$ 3,000$$ to start a fencing operation, and $$\$15$$ for a meal. According to Harry's parole officer, none of these items will ever be paid back. Can Toni deduct any of these losses?

   Toni, a gardener, lent Harry, his friend, his new $$\$ 500$$ lawn mower. Harry ruined the lawn mower, but replaced it with a $$\$ 425$$ model. Later in the same year, Toni lent Harry $$\$ 5,000$$ for bail, $$\$ 3,000$$ to start a fencing operation, and $$\$15$$ for a meal. According to Harry's parole officer, none of these items will ever be paid back. Can Toni deduct any of these losses?
 
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Federal Tax Research
Federal Tax Research
William A. Raabe,… 8th Edition
Chapter 6, Problem 80 ↓

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Toni lent Harry a lawn mower worth $$\$ 500$$, which was ruined. He also lent Harry $$\$ 5,000$$ for bail, $$\$ 3,000$$ for starting a fencing operation, and $$\$ 15$$ for a meal.  Show more…

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Toni, a gardener, lent Harry, his friend, his new $$\$ 500$$ lawn mower. Harry ruined the lawn mower, but replaced it with a $$\$ 425$$ model. Later in the same year, Toni lent Harry $$\$ 5,000$$ for bail, $$\$ 3,000$$ to start a fencing operation, and $$\$15$$ for a meal. According to Harry's parole officer, none of these items will ever be paid back. Can Toni deduct any of these losses?
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