Starting Your Business/Keeping Tax Records
What are Business Expenses
Business Bad Debts
If someone owes you money you cannot
collect, you have a bad debt. You may be able to deduct
the uncollectible amount when you figure your tax.
A business bad debt is a loss from the
worthlessness of a debt that was either:
1. Created or acquired in your trade
or business, or
2. Closely related to your trade or business when it became
partly or totally worthless.
How
to Treat
Where
to Deduct
Important References
Publication
535
Business Expenses
Form
1040 Schedule C line 9
Profit or Loss From Business
Form
1040 Schedule C-EZ line 2
Net Profit From Business
Form
1040 Schedule F line 34
Profit or Loss From Farming
Form
1120 line 15
U.S. Corporation Income Tax Return
Form
1065 line 12
U.S. Partnership Return of Income