File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

2010 Tax Preparation

Myfreetaxes.com/everettFree State Tax On Line1040x FormClues Fill 1040x FormTax Form 2012Irs 2012 Tax Forms 1040Myfreetaxes.comH&r Block 1040ez Free2009 Form 1040 EzIncome Tax Preparation SeniorsE-file 2012Www Irs Govefile2011 Tax ReturnsEfile State Income TaxState Income Tax ReturnNeed To File 2011 Tax Return H And R BlockIrs 1040v FormH&r Block Free MilitaryState Taxes Free FileTax Debt HelpFree Income TaxWww Irs Gov Free FileH And R Block Free Online2011 Tax Form 1040 EzHrblockonlineCan I Still File My 2011 Taxes2011 Federal Tax Form 1040H&r Block State Tax CouponFiling 1040nrAmended Tax ReturnHow Do I File Back TaxesFile 1040 X OnlineFiling Back State Taxes2011 E-fileH&r Block Free State Tax FilingTurbotax 2011 FreeTax DeductionsIncome Tax Preparation SoftwareHow To Ammend Tax ReturnHow To File Your Own Taxes

2010 Tax Preparation

2010 tax preparation 29. 2010 tax preparation   Límite sobre Deducciones Detalladas Table of Contents Introduction Useful Items - You may want to see: ¿Está Usted Sujeto al Límite? ¿Qué Deducciones Detalladas Están Limitadas? ¿Qué Deducciones Detalladas no Están Limitadas? ¿Cómo se Calcula el Límite?Ejemplo Introduction Este capítulo trata del límite general sobre las deducciones detalladas en el Anexo A (Formulario 1040). 2010 tax preparation Los temas abarcan: Quién está sujeto al límite. 2010 tax preparation Qué deducciones detalladas están limitadas. 2010 tax preparation Cómo calcular el límite. 2010 tax preparation Useful Items - You may want to see: Formulario (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés. 2010 tax preparation ¿Está Usted Sujeto al Límite? Si tiene ingresos brutos ajustados (AGI, por sus siglas en inglés) de más de $300,000, si es casado que presenta la declaración conjunta o viudo calificado, $275,000, si es cabeza de familia, $250,000, si es soltero o $150,000, si es casado que presenta la declaración por separado, está sujeto al límite sobre determinadas deducciones detalladas. 2010 tax preparation El ingreso bruto ajustado (AGI) es la cantidad de la línea 38 (Formulario 1040). 2010 tax preparation ¿Qué Deducciones Detalladas Están Limitadas? Las siguientes deducciones del Anexo A (Formulario 1040) están sujetas al límite general sobre las deducciones detalladas: Impuestos pagados —línea 9. 2010 tax preparation Intereses pagados —líneas 10,11,12 y 13. 2010 tax preparation Donaciones a organizaciones caritativas —línea 19. 2010 tax preparation Gastos laborales y determinadas deducciones misceláneas —línea 27. 2010 tax preparation Otras deducciones misceláneas —línea 28, excluyendo pérdidas por apuestas y juegos de azar y por hecho fortuito o robo. 2010 tax preparation ¿Qué Deducciones Detalladas no Están Limitadas? Las siguientes deducciones del Anexo A (Formulario 1040) no están sujetas al límite general sobre las deducciones detalladas. 2010 tax preparation Sin embargo, igualmente están sujetas a otros límites aplicables. 2010 tax preparation Gastos médicos y dentales —línea 4. 2010 tax preparation Gastos de intereses de inversión —línea 14. 2010 tax preparation Pérdidas por hecho fortuito y robo de bienes de uso personal —línea 20. 2010 tax preparation Pérdidas por hecho fortuito y robo de bienes que generan ingresos —línea 28. 2010 tax preparation Pérdidas por apuestas y juegos de azar —línea 28. 2010 tax preparation ¿Cómo se Calcula el Límite? Si las deducciones detalladas están sujetas al límite, el total de todas sus deducciones detalladas es reducido por la cantidad menor de uno de: el 80% de las deducciones detalladas afectadas por el límite. 2010 tax preparation Vea ¿Qué Deducciones Detalladas Están Limitadas? , anteriormente o el 3% de la cantidad por la cual los ingresos brutos ajustados sobrepasen $300,000, si es casado que presenta la declaración conjunta o viudo calificado, $275,000, si es cabeza de familia, $250,000, si es soltero o $150,000, si es casado que presenta la declaración por separado. 2010 tax preparation Antes de calcular el límite general sobre las deducciones detalladas, primero tiene que llenar las líneas 1 a 28 del Anexo A (Formulario 1040), incluyendo todo formulario afín (tal como el Formulario 2106, el Formulario 4684, etc. 2010 tax preparation ) El límite general sobre las deducciones detalladas se calcula después de haberse aplicado cualquier otro límite sobre la asignación de alguna deducción detallada. 2010 tax preparation Estos límites adicionales abarcan los límites sobre donaciones caritativas (capítulo 24), el límite sobre determinados gastos de comida y entretenimiento (capítulo 26) y el límite del 2% de los ingresos brutos ajustados sobre determinadas deducciones misceláneas (capítulo 28). 2010 tax preparation Hoja de trabajo de deducciones detalladas. 2010 tax preparation   Después de completar hasta la línea 28, inclusive, del Anexo A (Formulario 1040), puede utilizar la Itemized Deductions Worksheet (Hoja de trabajo de las deducciones detalladas), en las Instrucciones del Anexo A (Formulario 1040) para calcular el límite. 2010 tax preparation Anote el resultado en la línea 29 del Anexo A (Formulario 1040). 2010 tax preparation Guarde la hoja de trabajo con su documentación. 2010 tax preparation Debe comparar la cantidad de la deducción estándar con la cantidad de las deducciones detalladas después de aplicar el límite. 2010 tax preparation Utilice la cantidad mayor cuando complete la línea 40 (Formulario 1040). 2010 tax preparation Vea el capítulo 20 para información sobre cómo calcular la deducción estándar. 2010 tax preparation Ejemplo Para el año tributario 2013, Guillermo y Teresa Valdez presentan la declaración conjunta en el Formulario 1040. 2010 tax preparation Tienen ingresos brutos ajustados de $325,500 en la línea 38. 2010 tax preparation Las deducciones detalladas de su Anexo A son las siguientes: Impuestos pagados —línea 9   $ 17,900 Intereses pagados —líneas 10,11,12 y 13   45,000 Gasto de intereses de inversión  —línea 14   41,000 Donaciones a organizaciones caritativas —línea 19   21,000 Gastos laborales —línea 27   17,240 Total   $142,140       La deducción por gastos de intereses de inversión de los Valdez ($41,000 de la línea 14 del Anexo A (Formulario 1040) no está sujeta al límite general de las deducciones detalladas. 2010 tax preparation Los Valdez utilizan la Itemized Deductions Worksheet (Hoja de trabajo de las deducciones detalladas), en las Instrucciones del Anexo A (Formulario 1040) para calcular el límite general. 2010 tax preparation Del total de las deducciones detalladas de $142,140, los Valdez pueden deducir sólo $141,375 ($142,140 - $765). 2010 tax preparation Anotan $141,375 en la línea 29 del Anexo A (Formulario 1040). 2010 tax preparation Prev  Up  Next   Home   More Online Publications
Español

Federal Bureau of Investigation (FBI)

The Federal Bureau of Investigation enforces federal law, investigating a variety of criminal activity including terrorism, cybercrime, white collar crimes, public corruption, civil rights violations, and other major crimes. In an emergency dial 911!

Contact the Agency or Department

Website: Federal Bureau of Investigation (FBI)

Contact In-Person: Find an FBI Office Near You

Address: 935 Pennsylvania Ave NW
Washington, DC 20535-0001

Phone Number: (202) 324-3000

The 2010 Tax Preparation

2010 tax preparation 10. 2010 tax preparation   Business Bad Debts Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Definition of Business Bad DebtAccrual method. 2010 tax preparation Cash method. 2010 tax preparation Debt acquired from a decedent. 2010 tax preparation Liquidation. 2010 tax preparation Types of Business Bad Debts When a Debt Becomes Worthless How To Claim a Business Bad DebtSpecific Charge-Off Method Nonaccrual-Experience Method Recovery of a Bad DebtNet operating loss (NOL) carryover. 2010 tax preparation Introduction You have a bad debt if you cannot collect money owed to you. 2010 tax preparation A bad debt is either a business bad debt or a nonbusiness bad debt. 2010 tax preparation This chapter discusses only business bad debts. 2010 tax preparation Generally, a business bad debt is one that comes from operating your trade or business. 2010 tax preparation You can deduct business bad debts on Schedule C (Form 1040) or your applicable business income tax return. 2010 tax preparation All other bad debts are nonbusiness bad debts and are deductible only as short-term capital losses. 2010 tax preparation For more information on nonbusiness bad debts, see Publication 550. 2010 tax preparation Topics - This chapter discusses: Definition of business bad debt When a debt becomes worthless How to claim a business bad debt Recovery of a bad debt Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 556 Examination of Returns, Appeal Rights, and Claims for Refund Form (and Instructions) Schedule C (Form 1040) Profit or Loss From Business 1040X Amended U. 2010 tax preparation S. 2010 tax preparation Individual Income Tax Return 1045 Application for Tentative Refund 1139 Corporation Application for Tentative Refund 3115 Application for Change in Accounting Method See chapter 12 for information about getting publications and forms. 2010 tax preparation Definition of Business Bad Debt A business bad debt is a loss from the worthlessness of a debt that was either: Created or acquired in your trade or business, or Closely related to your trade or business when it became partly or totally worthless. 2010 tax preparation A debt is closely related to your trade or business if your primary motive for incurring the debt is business related. 2010 tax preparation Bad debts of a corporation (other than an S corporation) are always business bad debts. 2010 tax preparation Credit sales. 2010 tax preparation   Business bad debts are mainly the result of credit sales to customers. 2010 tax preparation Goods that have been sold, but not yet paid for, and services that have been performed, but not yet paid for, are recorded in your books as either accounts receivable or notes receivable. 2010 tax preparation After a reasonable period of time, if you have tried to collect the amount due, but are unable to do so, the uncollectible part becomes a business bad debt. 2010 tax preparation   Accounts or notes receivable valued at fair market value (FMV) when received are deductible only at that value, even though the FMV may be less than the face value. 2010 tax preparation If you purchased an account receivable for less than its face value, and the receivable subsequently becomes worthless, the most you are allowed to deduct is the amount you paid to acquire it. 2010 tax preparation    You can claim a business bad debt deduction only if the amount owed to you was previously included in gross income. 2010 tax preparation This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest. 2010 tax preparation Accrual method. 2010 tax preparation   If you use the accrual method of accounting, you generally report income as you earn it. 2010 tax preparation You can only claim a bad debt deduction for an uncollectible receivable if you have previously included the uncollectible amount in income. 2010 tax preparation   If you qualify, you can use the nonaccrual-experience method of accounting discussed later. 2010 tax preparation Under this method, you do not have to accrue income that, based on your experience, you do not expect to collect. 2010 tax preparation Cash method. 2010 tax preparation   If you use the cash method of accounting, you generally report income when you receive payment. 2010 tax preparation You cannot claim a bad debt deduction for amounts owed to you because you never included those amounts in income. 2010 tax preparation For example, a cash basis architect cannot claim a bad debt deduction if a client fails to pay the bill because the architect's fee was never included in income. 2010 tax preparation Debts from a former business. 2010 tax preparation   If you sell your business but retain its receivables, these debts are business debts because they arose out of your trade or business. 2010 tax preparation If any of these receivables subsequently become worthless, the loss is still a business bad debt. 2010 tax preparation Debt acquired from a decedent. 2010 tax preparation   The character of a loss from debts of a business acquired from a decedent is determined in the same way as debts acquired on the purchase of a business. 2010 tax preparation The executor of the decedent's estate treats any loss from the debts as a business bad debt if the debts were closely related to the decedent's trade or business when they became worthless. 2010 tax preparation Otherwise, a loss from these debts becomes a nonbusiness bad debt for the decedent's estate. 2010 tax preparation Liquidation. 2010 tax preparation   If you liquidate your business and some of the accounts receivable that you retain become worthless, they become business bad debts. 2010 tax preparation Types of Business Bad Debts Business bad debts may result from the following. 2010 tax preparation Loans to clients and suppliers. 2010 tax preparation   If you loan money to a client, supplier, employee, or distributor for a business reason and you are unable to collect the loan after attempting to do so, you have a business bad debt. 2010 tax preparation Debts owed by political parties. 2010 tax preparation   If a political party (or other organization that accepts contributions or spends money to influence elections) owes you money and the debt becomes worthless, you can claim a bad debt deduction only if all of the following requirements are met. 2010 tax preparation You use the accrual method of accounting. 2010 tax preparation The debt arose from the sale of goods or services in the ordinary course of your trade or business. 2010 tax preparation More than 30% of your receivables accrued in the year of the sale were from sales to political parties. 2010 tax preparation You made substantial and continuing efforts to collect on the debt. 2010 tax preparation Loan or capital contribution. 2010 tax preparation   You cannot claim a bad debt deduction for a loan you made to a corporation if, based on the facts and circumstances, the loan is actually a contribution to capital. 2010 tax preparation Debts of an insolvent partner. 2010 tax preparation   If your business partnership breaks up and one of your former partners becomes insolvent, you may have to pay more than your pro rata share of the partnership's debts. 2010 tax preparation If you pay any part of the insolvent partner's share of the debts, you can claim a bad debt deduction for the amount you paid that is attributable to the insolvent partner's share. 2010 tax preparation Business loan guarantee. 2010 tax preparation   If you guarantee a debt that subsequently becomes worthless, the debt can qualify as a business bad debt if all the following requirements are met. 2010 tax preparation You made the guarantee in the course of your trade or business. 2010 tax preparation You have a legal duty to pay the debt. 2010 tax preparation You made the guarantee before the debt became worthless. 2010 tax preparation You meet this requirement if you reasonably expected you would not have to pay the debt without full reimbursement from the borrower. 2010 tax preparation You received reasonable consideration for making the guarantee. 2010 tax preparation You meet this requirement if you made the guarantee in accord with normal business practice or for a good faith business purpose. 2010 tax preparation Example. 2010 tax preparation Jane Zayne owns the Zayne Dress Company. 2010 tax preparation She guaranteed payment of a $20,000 note for Elegant Fashions, a dress outlet. 2010 tax preparation Elegant Fashions is one of Zayne's largest clients. 2010 tax preparation Elegant Fashions later defaulted on the loan. 2010 tax preparation As a result, Ms. 2010 tax preparation Zayne paid the remaining balance of the loan in full to the bank. 2010 tax preparation She can claim a business bad debt deduction only for the amount she paid, since her guarantee was made in the course of her trade or business for a good faith business purpose. 2010 tax preparation She was motivated by the desire to retain one of her better clients and keep a sales outlet. 2010 tax preparation Deductible in the year paid. 2010 tax preparation   If you make a payment on a loan you guaranteed, you can deduct it in the year paid, unless you have rights against the borrower. 2010 tax preparation Rights against a borrower. 2010 tax preparation   When you make payment on a loan you guaranteed, you may have the right to take the place of the lender. 2010 tax preparation The debt is then owed to you. 2010 tax preparation If you have this right, or some other right to demand payment from the borrower, you cannot claim a bad debt deduction until these rights become partly or totally worthless. 2010 tax preparation Joint debtor. 2010 tax preparation   If two or more debtors jointly owe you money, your inability to collect from one does not enable you to deduct a proportionate amount as a bad debt. 2010 tax preparation Sale of mortgaged property. 2010 tax preparation   If mortgaged or pledged property is sold for less than the debt, the unpaid, uncollectible balance of the debt is a bad debt. 2010 tax preparation When a Debt Becomes Worthless A debt becomes worthless when there is no longer any chance the amount owed will be paid. 2010 tax preparation This may occur when the debt is due or prior to that date. 2010 tax preparation To demonstrate worthlessness, you must only show that you have taken reasonable steps to collect the debt but were unable to do so. 2010 tax preparation It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. 2010 tax preparation Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. 2010 tax preparation Property received for debt. 2010 tax preparation   If you receive property in partial settlement of a debt, reduce the debt by the property's FMV, which becomes the property's basis. 2010 tax preparation You can deduct the remaining debt as a bad debt if and when it becomes worthless. 2010 tax preparation   If you later sell the property for more than its basis, any gain on the sale is due to the appreciation of the property. 2010 tax preparation It is not a recovery of a bad debt. 2010 tax preparation For information on the sale of an asset, see Publication 544. 2010 tax preparation How To Claim a Business Bad Debt There are two methods to claim a business bad debt. 2010 tax preparation The specific charge-off method. 2010 tax preparation The nonaccrual-experience method. 2010 tax preparation Generally, you must use the specific charge-off method. 2010 tax preparation However, you may use the nonaccrual-experience method if you meet the requirements discussed later under Nonaccrual-Experience Method . 2010 tax preparation Specific Charge-Off Method If you use the specific charge-off method, you can deduct specific business bad debts that become either partly or totally worthless during the tax year. 2010 tax preparation However, with respect to partly worthless bad debts, your deduction is limited to the amount you charged off on your books during the year. 2010 tax preparation Partly worthless debts. 2010 tax preparation   You can deduct specific bad debts that become partly uncollectible during the tax year. 2010 tax preparation Your tax deduction is limited to the amount you charge off on your books during the year. 2010 tax preparation You do not have to charge off and deduct your partly worthless debts annually. 2010 tax preparation You can delay the charge off until a later year. 2010 tax preparation However, you cannot deduct any part of a debt after the year it becomes totally worthless. 2010 tax preparation Significantly modified debt. 2010 tax preparation   An exception to the charge-off rule exists for debt which has been significantly modified and on which the holder recognized gain. 2010 tax preparation For more information, see Regulations section 1. 2010 tax preparation 166-3(a)(3). 2010 tax preparation Deduction disallowed. 2010 tax preparation   Generally, you can claim a partial bad debt deduction only in the year you make the charge-off on your books. 2010 tax preparation If, under audit, the IRS does not allow your deduction and the debt becomes partly worthless in a later tax year, you can deduct the amount you charged off in that year plus the disallowed amount charged off in the earlier year. 2010 tax preparation The charge-off in the earlier year, unless reversed on your books, fulfills the charge-off requirement for the later year. 2010 tax preparation Totally worthless debts. 2010 tax preparation   If a debt becomes totally worthless in the current tax year, you can deduct the entire amount, less any amount deducted in an earlier tax year when the debt was only partly worthless. 2010 tax preparation   You do not have to make an actual charge-off on your books to claim a bad debt deduction for a totally worthless debt. 2010 tax preparation However, you may want to do so. 2010 tax preparation If you do not and the IRS later rules the debt is only partly worthless, you will not be allowed a deduction for the debt in that tax year because a deduction of a partly worthless bad debt is limited to the amount actually charged off. 2010 tax preparation See Partly worthless debts, earlier. 2010 tax preparation Filing a claim for refund. 2010 tax preparation   If you did not deduct a bad debt on your original return for the year it became worthless, you can file a claim for a credit or refund. 2010 tax preparation If the bad debt was totally worthless, you must file the claim by the later of the following dates. 2010 tax preparation 7 years from the date your original return was due (not including extensions). 2010 tax preparation 2 years from the date you paid the tax. 2010 tax preparation   If the claim is for a partly worthless bad debt, you must file the claim by the later of the following dates. 2010 tax preparation 3 years from the date you filed your original return. 2010 tax preparation 2 years from the date you paid the tax. 2010 tax preparation You may have longer to file the claim if you were unable to manage your financial affairs due to a physical or mental impairment. 2010 tax preparation Such an impairment requires proof of existence. 2010 tax preparation   For details and more information about filing a claim, see Publication 556. 2010 tax preparation Use one of the following forms to file a claim. 2010 tax preparation For more information, see the instructions for the applicable form. 2010 tax preparation Table 10-1. 2010 tax preparation Forms Used To File a Claim IF you filed as a. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation THEN file. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation Sole proprietor or farmer Form 1040X Corporation Form 1120X S corporation Form 1120S and check box H(4) Partnership Form 1065X if filing on paper or  Form 1065 and check box G(5) if filing electronically Nonaccrual-Experience Method If you use an accrual method of accounting and qualify under the rules explained in this section, you can use the nonaccrual-experience method for bad debts. 2010 tax preparation Under this method, you do not accrue service related income you expect to be uncollectible. 2010 tax preparation Because the expected uncollectible amounts are not included in income, these amounts are not later deducted from income. 2010 tax preparation Generally, you can use the nonaccrual-experience method for accounts receivable for services you performed only if: The services are provided in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, or the performing arts, or You meet the $5 million gross receipts test for all prior years. 2010 tax preparation Service related income. 2010 tax preparation   You can use the nonaccrual-experience method only for amounts earned by performing services. 2010 tax preparation You cannot use this method for amounts owed to you from activities such as lending money, selling goods, or acquiring receivables or other rights to receive payment. 2010 tax preparation Gross receipts test. 2010 tax preparation   To find out if you meet the $5 million gross receipts test for all prior years, you must figure the average annual gross receipts for each prior year. 2010 tax preparation If your average annual gross receipts for any year exceeds $5 million, you cannot use the non-accural experience method. 2010 tax preparation   The average annual gross receipts for any year is the average of gross receipts from the year in question and the 2 previous years. 2010 tax preparation For example, if you were figuring the average annual gross receipts for 2013, you would average your gross receipts for 2011, 2012, and 2013. 2010 tax preparation Interest or penalty charged. 2010 tax preparation   Generally, you cannot use the nonaccrual-experience method for amounts due on which you charge interest or a late payment penalty. 2010 tax preparation However, do not treat a discount offered for early payment as the charging of interest or a penalty if both the following apply. 2010 tax preparation You otherwise accrue the full amount due as gross income at the time you provide the services. 2010 tax preparation You treat the discount allowed for early payment as an adjustment to gross income in the year of payment. 2010 tax preparation Change in accounting method. 2010 tax preparation   Generally, you must obtain consent to change to a nonaccrual-experience method (other than one of the safe harbor methods) or to change from one method to another. 2010 tax preparation See Form 3115 and the Instructions for Form 3115 for more information. 2010 tax preparation Recovery of a Bad Debt If you claim a deduction for a bad debt on your income tax return and later recover (collect) all or part of it, you may have to include all or part of the recovery in gross income. 2010 tax preparation The amount you include is limited to the amount you actually deducted. 2010 tax preparation However, you can exclude the amount deducted that did not reduce your tax. 2010 tax preparation Report the recovery as “Other income” on the appropriate business form or schedule. 2010 tax preparation See Recoveries in Publication 525 for more information. 2010 tax preparation Net operating loss (NOL) carryover. 2010 tax preparation   If a bad debt deduction increases an NOL carryover that has not expired before the beginning of the tax year in which the recovery takes place, you treat the deduction as having reduced your tax. 2010 tax preparation A bad debt deduction that contributes to a NOL helps lower taxes in the year to which you carry the NOL. 2010 tax preparation For more information about NOLs, see Publication 536. 2010 tax preparation Also, see the Instructions for Form 1045, and the Instructions for Form 1139. 2010 tax preparation Prev  Up  Next   Home   More Online Publications