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Article: Claiming business bad debt deductions.
- Article from:
- The Tax Adviser
- Article date:
- July 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Editor's note: This case study has been adapted from "PPC Tax Planning Guide--Individuals," 2d edition, by Elizabeth DiTommaso, Helen Gardner and Terry W. Lovelace, published by Practitioners Publishing Company, Fort Worth, Tex., 1993.
Facts: Jack Greenthum owns and operates Bloomin Deals, a wholesale nursery business. The business is a sole proprietroship and uses the accrual method of accounting. * Jack sells on credit to a select few longtime customers; otherwise, sales are for cash only. At the end of the year, Bloomin Deals' accounts receivable reflect a balance of $48,000. * Jack approached his tax adviser in December with the information for year-end tax ...