đź’¸ Can You Deduct Money Owed to You on Your Taxes? đź’¸
Did someone fail to pay you back? Here’s what you need to know about writing off bad debts:
👉 For Businesses:
If a client didn’t pay for goods or services, you might be able to write it off as a business expense. Just make sure:
✔️ It’s related to your business.
✔️ You included it in your income.
✔️ You made an effort to collect it.
👉 For Personal Loans:
If a friend or family member didn’t repay you, it could qualify as a capital loss, but only if:
✔️ The debt is 100% uncollectible.
✔️ You have proof it was a loan, not a gift.
đź“‹ Pro Tip:Â Keep all records, like loan agreements and collection attempts, to back up your claim!
đź’ˇ Not sure if your bad debt qualifies? Reach out for expert tax advice!
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