Do you have deductible bad business debt?

Can you deduct your bad business debt this year? According to the IRS, the debt must be closely related to your trade or business. This type of bad debt is typically involves unpaid customer invoices, but it can also include business-related loans. To qualify as a deduction, these two statements must be true:

  • The amount is already included as income or as an asset

  • The debt is considered to be partially or completely worthless

Call for help determining whether or not you can deduct your bad debt as a business expense.