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Business Debt Consolidation Lehi UT

Local information for business debt consolidation in Lehi. Includes detailed information on local businesses that provide access to business debt counseling, business debt reconstructing, business debt settlements, as well as advice and content on business debt management and business debt reduction.

Eric Gurr, CPA LLC
(801) 225-9411
1156 South State Street
Orem, UT
 
Squire & Company, CPAs
(801) 225-6900
1329 South 800 East, Orem
Orem, UT
 
Larsen, Joseph M., C.P.A. P.C
(801) 373-5300
1275 N. University
Provo, UT
 
Federaldebtreliefs
(801) 304-9936
3712 Philadelphia Avenue, Midvale, UT 84047
alaska, AL
 
Honor Management Accounting
(801) 804-0160
1403 East 820 South, Spanish
Fork, UT
 
Me, My Money and
(801) 623-3977
263 South 100 Wes
Orem, UT
 
James H. Calder, C.P.A
(801) 375-7771
P.O. Box 96
Provo, UT
 
Liberty Tax Service
(801) 615-7372
2255 North University Suite 15, Provo
Provo, UT
 
Larsen, Joseph M., C.P.A. P.C
(801) 373-5300
1275 N. University
Provo, UT
 
Liberty Tax Service
(801) 615-7372
2255 North University Suite 15, Provo
Provo, UT
 

Bad Debt Deduction

Bad Debt Deduction

There are two kinds on bad debt deduction. One is a business bad debt deduction and the other is the non-business bad debt deduction. They have some things in common, however.

A bad debt is money that is owed to you that can not be collected. When you operate a business, this is income that should be realized but because of the failure of the debtor to pay, it never is collected. For tax purposes, this debt must be one that is incurred in the normal course of business or trade. In may be claimed in part or in full as a normal business expense that reduces gross income. This is called a business bad debt.

A non-business bad debt operates slightly differently. Since it is not something that takes place in the normal operation of a business, it must represent income that has all ready been received and then is loaned to a person who fails to repay it. It can not be income that is expected, but never received. To explain this difference, consider this example: a home improvement company performs some repairs on a home and presents a bill for their services. The homeowner does not pay and eventually files for bankruptcy.

The home repair company is unable to recover any of its debt in the bankruptcy settlement. The company never received any income from this transaction, but the amount that was billed and never received is a bad debt and can be deducted from gross income for profit and taxation purposes. This is true even if the only actual loss to the company was the time and efforts of their employees since repairing of homes is their normal business operation.

For an individual, however, they must have received some income and then made a loan that is totally uncollectible. It is not necessary that the taxpayer go to court and attempt to recover the debt if they can show that it would have been uncollectible even with a court judgment. They also must be able to prove that the transaction was always intended to be a loan and not a gift....

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