Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Company has an allowance for bad debt on books ( and bad debt expense)

jgcpa
Level 4

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?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
linette
Level 5

An accrual basis taxpayer can have bad debt.

View solution in original post

1 Comment 1
linette
Level 5

An accrual basis taxpayer can have bad debt.