Tag Archive: business deductions

When is a Bad Debt a Deduction?

Written by January 4, 2013

When is a bad debt deductable? I hear this question all of the time? It happens to butchers, bakers, and candlestick makers. It probably happens in your business, too: A customer doesn’t pay what they owe and you end up with a bad debt. Can you take a tax deduction? The answer depends on how you account for income on...