How many types of types of bad debts?
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niles
Apprentice
Joined: 07 Jul 2006
Posts: 3
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 Posted: 04/10/11 - 06:11 Post subject: |
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| I have recently found out I have a bad debt. It really bothers me and I am not sure just how it will affect my business. I would like to know just how many types of bad debts are there. If anyone could help me with some advice, that would be great. Thanks in advance. |
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bendix
Apprentice
Joined: 11 Nov 2005
Posts: 9
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| Posted: 05/09/11 - 21:05 Post subject: |
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| Any business is always a big risk. You simply never know what can go wrong. Bad debts, as a debts someone has toward you, but you cannot collect, can also be problematic. There are two types, business and non-business, that is personal bad debts. You can deduct any business bad debt, if you have already included that potential income in your return and thus had higher tax to pay. This is a debt of a company toward company, and a result of a trade or some other form of business deal.If you have a personal bad debt, however, it is not good for deducting, as it is a result of your personal affairs. I hope you find the info helpful. Best of luck. |
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