jgcpa
Level 4
05-12-2020
12:52 PM
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From what I am reading, IRS does not allow deduction for Allowance for bad debt. The debt has not been written off. It is showing on the M-1 as a book to tax difference. Does it reduce basis as a non-deductible expense? Or not till the actual write off?
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linette
Level 5
05-13-2020
08:52 PM
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An accrual basis taxpayer can have bad debt.
