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2013 Amended Tax Return

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2013 Amended Tax Return

2013 amended tax return Index A Accidentes, Pérdidas deducibles. 2013 amended tax return , Pérdidas no deducibles. 2013 amended tax return Agencia Federal para el Manejo de Emergencias (FEMA) , cómo comunicarse con la, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Ajustes a la base, Ajuste a la base de los bienes de una sociedad anónima. 2013 amended tax return , Ajustes a la Base Aplazamiento de la declaración de una ganancia, Aplazamiento de la Declaración de una Ganancia Bienes de reposición adquiridos antes de presentar la declaración de impuestos, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. 2013 amended tax return Bienes de reposición adquiridos después de haber presentado la declaración de impuestos, Bienes de reposición adquiridos después de haber presentado la declaración de impuestos. 2013 amended tax return Cambio de idea, Si cambia de idea. 2013 amended tax return Declaración enmendada, Declaración enmendada. 2013 amended tax return Documento escrito requerido, Documento escrito requerido. 2013 amended tax return Límite de 3 años, Límite de 3 años. 2013 amended tax return Sustitución de los bienes de reposición, Sustitución de los bienes de reposición. 2013 amended tax return Asistencia (see Ayuda con los impuestos) Automóviles Accidentes, Pérdidas deducibles. 2013 amended tax return Valor justo de mercado de, Valor de automóviles. 2013 amended tax return Ayuda (see Ayuda con los impuestos) Ayuda con los impuestos, Cómo Obtener Ayuda con los Impuestos B Base Ajustada, Base Ajustada Ajustes a, Ajuste a la base de los bienes de una sociedad anónima. 2013 amended tax return , Ajustes a la Base Propiedad de Reposición, Base de la propiedad de reposición. 2013 amended tax return Base ajustada, Base Ajustada Bienes de reposición, Bienes de Reposición Ajuste a la base de los bienes de una sociedad anónima, Ajuste a la base de los bienes de una sociedad anónima. 2013 amended tax return Aplazamiento de la declaración de una ganancia, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. 2013 amended tax return Pago adelantado, Pago adelantado. 2013 amended tax return Vivienda principal Ubicada en zona de desastre, Vivienda principal en una zona de desastre. 2013 amended tax return Bienes de uso personal Cómo declarar pérdidas y ganancias, Bienes de uso personal. 2013 amended tax return Bienes extraviados o perdidos, Bienes extraviados o perdidos. 2013 amended tax return Bienes muebles Deducción de pérdidas, cálculo de, Bienes muebles. 2013 amended tax return Bienes raíces de uso personal, Excepción en el caso de bienes inmuebles de uso personal. 2013 amended tax return Bienes robados (see Pérdidas por robo) Bienes robados recuperados, Bienes robados recuperados. 2013 amended tax return C Comentarios sobre la publicación, Comentarios y sugerencias. 2013 amended tax return Cómo aplazar la declaración de una ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular una ganancia, Propiedad usada en parte para fines comerciales y en parte para fines personales. 2013 amended tax return Cómo calcular una pérdida, Comprobación de las pérdidas por robo. 2013 amended tax return Base ajustada, Base Ajustada Pérdidas en zonas de desastre, Cómo calcular la deducción de pérdidas. 2013 amended tax return Seguro y otros reembolsos, Seguro y Otros Reembolsos Cómo Calcular una Pérdida, Cómo Calcular la Deducción Cómo declarar pérdidas y ganancias, Declaración de una ganancia. 2013 amended tax return , Cómo Declarar Pérdidas y Ganancias Adquiridos antes o después de presentar la declaración de impuestos, Cuándo Declarar Pérdidas y Ganancias Base, ajustes a la, Ajustes a la Base Bienes de uso personal, Bienes de uso personal. 2013 amended tax return Deducciones mayores al ingreso, Si las Deducciones son Mayores que el Ingreso Depósitos monetarios, Cómo se declaran las pérdidas de depósitos monetarios. 2013 amended tax return Tabla 1, Tabla 1. 2013 amended tax return Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. 2013 amended tax return Propiedad comercial y de generación de ingresos, Bienes comerciales y de generación de ingresos. 2013 amended tax return Comprobación de las Pérdidas, Comprobación de las Pérdidas Contribuyentes casados Límites de la deducción, Contribuyentes casados. 2013 amended tax return , Contribuyentes casados. 2013 amended tax return Costos Fotografías tomadas después de la pérdida, Costos de fotografías y tasaciones. 2013 amended tax return Gastos imprevistos, Gastos afines. 2013 amended tax return Jardines, Jardines. 2013 amended tax return Limpieza, Costos de limpieza y reparaciones. 2013 amended tax return Protección, Costos de protección. 2013 amended tax return Reparaciones, Costos de limpieza y reparaciones. 2013 amended tax return Reposición, Costos de reposición. 2013 amended tax return Tasaciones, Costos de fotografías y tasaciones. 2013 amended tax return Costos de limpieza, Costos de limpieza y reparaciones. 2013 amended tax return Costos de protección, Costos de protección. 2013 amended tax return Costos de reparación, Costos de limpieza y reparaciones. 2013 amended tax return Costos de reposición, Costos de reposición. 2013 amended tax return D Declaración enmendada, Declaración enmendada. 2013 amended tax return Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. 2013 amended tax return Desastres declarados por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. 2013 amended tax return , Pérdidas en Zonas de Desastre Deudas incobrables, Deudas incobrables no relacionadas con los negocios. 2013 amended tax return Deudas incobrables no relacionadas con los negocios, Deudas incobrables no relacionadas con los negocios. 2013 amended tax return Documentación de la pérdida, Comprobación de las pérdidas por robo. 2013 amended tax return Donaciones en efectivo, Donaciones en efectivo. 2013 amended tax return E Entidad afín, compra de bienes de reposición de una, Compra de bienes de reposición de una entidad afín. 2013 amended tax return Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). 2013 amended tax return Expropiaciones forzosas, Expropiaciones forzosas. 2013 amended tax return F Fallecimiento de un contribuyente Aplazamiento de la declaración de una ganancia, Fallecimiento de un contribuyente. 2013 amended tax return Fines comerciales, propiedad usada en parte para, Propiedad usada en parte para fines comerciales y en parte para fines personales. 2013 amended tax return Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. 2013 amended tax return Formulario 1040, Anexo A, Bienes de uso personal. 2013 amended tax return Formulario 1040, Anexo D, Bienes de uso personal. 2013 amended tax return Formulario 1040X Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. 2013 amended tax return Formulario 4684 Cómo declarar pérdidas y ganancias en bienes de uso personal, Bienes de uso personal. 2013 amended tax return Fotografías Documentación de la pérdida, Costos de fotografías y tasaciones. 2013 amended tax return G Ganancias Aplazamiento de, Aplazamiento de la Declaración de una Ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular, Cómo Calcular una Ganancia Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Cuándo declarar, Si cambia de idea. 2013 amended tax return Reembolsos, Ganancias por reembolsos. 2013 amended tax return Gastos afines, Gastos afines. 2013 amended tax return Gastos imprevistos, Gastos afines. 2013 amended tax return I Información adicional (see Ayuda con los impuestos) J Jardines, Jardines. 2013 amended tax return L Límites de la deducción, Límites de la Deducción Límites de la Deducción Regla de los $100, Regla de los $100 Regla del 10%, Regla del 10% Regla del 2%, Regla del 2% N Niños desaparecidos, fotografías de, Recordatorios P Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. 2013 amended tax return Pagos del seguro por gastos de manutención, Pagos del seguro por gastos de manutención. 2013 amended tax return Paneles de Yeso (Drywall) Corrosivos, Procedimiento Especial Correspondiente a Daños Ocasionados por Paneles de Yeso (Drywall) Corrosivos Pérdida de inventario, Pérdida de inventario. 2013 amended tax return Pérdidas en zonas de desastre, Pérdida de inventario por desastre. 2013 amended tax return Pérdida de madera en pie, Pérdida de madera en pie. 2013 amended tax return Pérdidas Calcular la cantidad (see Cómo calcular una pérdida) Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Comprobación de las, Recuperación de pérdida deducida. 2013 amended tax return Cuándo declarar, Si cambia de idea. 2013 amended tax return (Tabla 3), Tabla 3. 2013 amended tax return Cuándo deducir una pérdida por hecho fortuito o robo Depósitos monetarios (see Pérdidas de depósitos) Documentación de, Comprobación de las pérdidas por robo. 2013 amended tax return Hecho Fortuito (see Pérdidas por hecho fortuito) Robo (see Pérdidas por robo) Zonas de desastre (see Pérdidas en zonas de desastre) Pérdidas de Depósitos Declaración de (Tabla 1), Tabla 1. 2013 amended tax return Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas de depósitos monetarios, Bienes extraviados o perdidos. 2013 amended tax return , Tabla 3. 2013 amended tax return Cuándo deducir una pérdida por hecho fortuito o robo Cuándo declarar, Pérdidas de depósitos monetarios. 2013 amended tax return Pérdidas deducibles, Pérdidas deducibles. 2013 amended tax return Pérdidas en Zonas de Desastre Cómo calcular la deducción de pérdidas, Cómo calcular la deducción de pérdidas. 2013 amended tax return Cómo deducir la pérdida del año anterior, Cómo deducir la pérdida del año anterior. 2013 amended tax return Cuándo deducir, Cuándo deducir la pérdida. 2013 amended tax return Tabla 3, Tabla 3. 2013 amended tax return Cuándo deducir una pérdida por hecho fortuito o robo Declaración en una declaración enmendada, Declaración de pérdida por desastre en declaración de impuestos enmendada. 2013 amended tax return Desastre declarado por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. 2013 amended tax return , Pérdidas en Zonas de Desastre Documentación, Documentación. 2013 amended tax return Formulario 1040X, Cómo declarar la pérdida en el Formulario 1040X. 2013 amended tax return Inventario, Pérdida de inventario por desastre. 2013 amended tax return Pagos calificados de asistencia en caso de desastre, Pagos calificados de asistencia en caso de desastre. 2013 amended tax return Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. 2013 amended tax return Plazos Tributarios Aplazados, Zona de desastre con cobertura. 2013 amended tax return Préstamo federal cancelado, Préstamo federal cancelado. 2013 amended tax return Reglas para vivienda principal, Vivienda principal en zona de desastre. 2013 amended tax return , Ganancias. 2013 amended tax return Vivienda inhabitable, Vivienda inhabitable por desastre. 2013 amended tax return Pérdidas en zonas de desastre, Pérdida del inquilino. 2013 amended tax return Pérdidas no deducibles, Pérdidas no deducibles. 2013 amended tax return Pérdidas por hecho fortuito, Tabla 3. 2013 amended tax return Cuándo deducir una pérdida por hecho fortuito o robo Comprobación de las, Comprobación de las pérdidas por hecho fortuito. 2013 amended tax return Cuándo declarar, Pérdidas. 2013 amended tax return Definición, Hecho Fortuito Depósitos monetarios, pérdidas de, Pérdida ordinaria o por hechos fortuitos. 2013 amended tax return Deterioro progresivo, Deterioro progresivo. 2013 amended tax return Pérdidas deducibles, Pérdidas deducibles. 2013 amended tax return Pérdidas no deducibles, Pérdidas no deducibles. 2013 amended tax return Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. 2013 amended tax return Pérdidas por robo, Robo Bienes extraviados o perdidos, Bienes extraviados o perdidos. 2013 amended tax return Comprobación de las, Comprobación de las pérdidas por robo. 2013 amended tax return Cuándo declarar, Pérdidas. 2013 amended tax return Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 3. 2013 amended tax return Cuándo deducir una pérdida por hecho fortuito o robo Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). 2013 amended tax return Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. 2013 amended tax return Valor justo de mercado de los bienes robados, Valor justo de mercado de los bienes robados. 2013 amended tax return Plazo de reposición, Plazo de Reposición Prórroga de, Prórroga. 2013 amended tax return Plazos Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Propiedad alquilada, Propiedad alquilada. 2013 amended tax return Cuándo declarar, Pérdida del inquilino. 2013 amended tax return Propiedad comercial o de generación de ingresos, Propiedad comercial o de generación de ingresos. 2013 amended tax return Propiedad de reposición Base de, Base de la propiedad de reposición. 2013 amended tax return Vivienda principal, Vivienda principal repuesta. 2013 amended tax return Publicaciones (see Ayuda con los impuestos) R Reducción de intereses, Reducción de intereses y multas. 2013 amended tax return Reducción de intereses y multas, Reducción de intereses y multas. 2013 amended tax return Reducción de multas, Reducción de intereses y multas. 2013 amended tax return Reembolsos Asistencia en caso de desastre, Asistencia en caso de desastre. 2013 amended tax return Donaciones en efectivo, Donaciones en efectivo. 2013 amended tax return Falta de presentación de una solicitud, Falta de presentación de una solicitud de reembolso. 2013 amended tax return Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. 2013 amended tax return Recibido después de la deducción de una pérdida, Reembolso Recibido Después de la Deducción de una Pérdida Tipos de, Tipos de Reembolsos Registros para el cálculo de pérdidas por hecho fortuito y robo, Registros para el cálculo de pérdidas por hecho fortuito y robo. 2013 amended tax return S Seguros, Seguro y Otros Reembolsos Gastos de manutención, pagos del seguro por, Pagos del seguro por gastos de manutención. 2013 amended tax return Servicio del Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. 2013 amended tax return Servicios gratuitos para los impuestos, Cómo Obtener Ayuda con los Impuestos Subsidios de asistencia en caso de desastre, Asistencia en caso de desastre. 2013 amended tax return Subsidios estales de asistencia por desastres para empresas, Subsidios estatales de asistencia por desastre para empresas. 2013 amended tax return Subsidios federales de asistencia en caso de desastre, Subsidios federales de asistencia en caso de desastre. 2013 amended tax return Sugerencias para la publicación, Comentarios y sugerencias. 2013 amended tax return T Tablas y figuras Cómo Declarar la Pérdida de Depósitos Monetarios (Tabla 1), Tabla 1. 2013 amended tax return Cómo Declarar la Pérdida de Depósitos Monetarios Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 1. 2013 amended tax return Cómo Declarar la Pérdida de Depósitos Monetarios , Tabla 3. 2013 amended tax return Cuándo deducir una pérdida por hecho fortuito o robo Tasaciones, Tasaciones. 2013 amended tax return , Costos de fotografías y tasaciones. 2013 amended tax return V Valor justo de mercado Cálculo de la disminución de, Disminución del Valor Justo de Mercado Puntos a no tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a No Tener en Cuenta Puntos a tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a Tener en Cuenta Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores, Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores. 2013 amended tax return Valor sentimental, Valor sentimental. 2013 amended tax return Prev  Up     Home   More Online Publications
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The 2013 Amended Tax Return

2013 amended tax return 10. 2013 amended tax return   Business Bad Debts Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Definition of Business Bad DebtAccrual method. 2013 amended tax return Cash method. 2013 amended tax return Debt acquired from a decedent. 2013 amended tax return Liquidation. 2013 amended tax return 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. 2013 amended tax return Introduction You have a bad debt if you cannot collect money owed to you. 2013 amended tax return A bad debt is either a business bad debt or a nonbusiness bad debt. 2013 amended tax return This chapter discusses only business bad debts. 2013 amended tax return Generally, a business bad debt is one that comes from operating your trade or business. 2013 amended tax return You can deduct business bad debts on Schedule C (Form 1040) or your applicable business income tax return. 2013 amended tax return All other bad debts are nonbusiness bad debts and are deductible only as short-term capital losses. 2013 amended tax return For more information on nonbusiness bad debts, see Publication 550. 2013 amended tax return 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. 2013 amended tax return S. 2013 amended tax return 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. 2013 amended tax return 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. 2013 amended tax return A debt is closely related to your trade or business if your primary motive for incurring the debt is business related. 2013 amended tax return Bad debts of a corporation (other than an S corporation) are always business bad debts. 2013 amended tax return Credit sales. 2013 amended tax return   Business bad debts are mainly the result of credit sales to customers. 2013 amended tax return 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. 2013 amended tax return 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. 2013 amended tax return   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. 2013 amended tax return 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. 2013 amended tax return    You can claim a business bad debt deduction only if the amount owed to you was previously included in gross income. 2013 amended tax return This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest. 2013 amended tax return Accrual method. 2013 amended tax return   If you use the accrual method of accounting, you generally report income as you earn it. 2013 amended tax return You can only claim a bad debt deduction for an uncollectible receivable if you have previously included the uncollectible amount in income. 2013 amended tax return   If you qualify, you can use the nonaccrual-experience method of accounting discussed later. 2013 amended tax return Under this method, you do not have to accrue income that, based on your experience, you do not expect to collect. 2013 amended tax return Cash method. 2013 amended tax return   If you use the cash method of accounting, you generally report income when you receive payment. 2013 amended tax return You cannot claim a bad debt deduction for amounts owed to you because you never included those amounts in income. 2013 amended tax return 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. 2013 amended tax return Debts from a former business. 2013 amended tax return   If you sell your business but retain its receivables, these debts are business debts because they arose out of your trade or business. 2013 amended tax return If any of these receivables subsequently become worthless, the loss is still a business bad debt. 2013 amended tax return Debt acquired from a decedent. 2013 amended tax return   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. 2013 amended tax return 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. 2013 amended tax return Otherwise, a loss from these debts becomes a nonbusiness bad debt for the decedent's estate. 2013 amended tax return Liquidation. 2013 amended tax return   If you liquidate your business and some of the accounts receivable that you retain become worthless, they become business bad debts. 2013 amended tax return Types of Business Bad Debts Business bad debts may result from the following. 2013 amended tax return Loans to clients and suppliers. 2013 amended tax return   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. 2013 amended tax return Debts owed by political parties. 2013 amended tax return   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. 2013 amended tax return You use the accrual method of accounting. 2013 amended tax return The debt arose from the sale of goods or services in the ordinary course of your trade or business. 2013 amended tax return More than 30% of your receivables accrued in the year of the sale were from sales to political parties. 2013 amended tax return You made substantial and continuing efforts to collect on the debt. 2013 amended tax return Loan or capital contribution. 2013 amended tax return   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. 2013 amended tax return Debts of an insolvent partner. 2013 amended tax return   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. 2013 amended tax return 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. 2013 amended tax return Business loan guarantee. 2013 amended tax return   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. 2013 amended tax return You made the guarantee in the course of your trade or business. 2013 amended tax return You have a legal duty to pay the debt. 2013 amended tax return You made the guarantee before the debt became worthless. 2013 amended tax return You meet this requirement if you reasonably expected you would not have to pay the debt without full reimbursement from the borrower. 2013 amended tax return You received reasonable consideration for making the guarantee. 2013 amended tax return You meet this requirement if you made the guarantee in accord with normal business practice or for a good faith business purpose. 2013 amended tax return Example. 2013 amended tax return Jane Zayne owns the Zayne Dress Company. 2013 amended tax return She guaranteed payment of a $20,000 note for Elegant Fashions, a dress outlet. 2013 amended tax return Elegant Fashions is one of Zayne's largest clients. 2013 amended tax return Elegant Fashions later defaulted on the loan. 2013 amended tax return As a result, Ms. 2013 amended tax return Zayne paid the remaining balance of the loan in full to the bank. 2013 amended tax return 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. 2013 amended tax return She was motivated by the desire to retain one of her better clients and keep a sales outlet. 2013 amended tax return Deductible in the year paid. 2013 amended tax return   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. 2013 amended tax return Rights against a borrower. 2013 amended tax return   When you make payment on a loan you guaranteed, you may have the right to take the place of the lender. 2013 amended tax return The debt is then owed to you. 2013 amended tax return 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. 2013 amended tax return Joint debtor. 2013 amended tax return   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. 2013 amended tax return Sale of mortgaged property. 2013 amended tax return   If mortgaged or pledged property is sold for less than the debt, the unpaid, uncollectible balance of the debt is a bad debt. 2013 amended tax return When a Debt Becomes Worthless A debt becomes worthless when there is no longer any chance the amount owed will be paid. 2013 amended tax return This may occur when the debt is due or prior to that date. 2013 amended tax return To demonstrate worthlessness, you must only show that you have taken reasonable steps to collect the debt but were unable to do so. 2013 amended tax return It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. 2013 amended tax return Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. 2013 amended tax return Property received for debt. 2013 amended tax return   If you receive property in partial settlement of a debt, reduce the debt by the property's FMV, which becomes the property's basis. 2013 amended tax return You can deduct the remaining debt as a bad debt if and when it becomes worthless. 2013 amended tax return   If you later sell the property for more than its basis, any gain on the sale is due to the appreciation of the property. 2013 amended tax return It is not a recovery of a bad debt. 2013 amended tax return For information on the sale of an asset, see Publication 544. 2013 amended tax return How To Claim a Business Bad Debt There are two methods to claim a business bad debt. 2013 amended tax return The specific charge-off method. 2013 amended tax return The nonaccrual-experience method. 2013 amended tax return Generally, you must use the specific charge-off method. 2013 amended tax return However, you may use the nonaccrual-experience method if you meet the requirements discussed later under Nonaccrual-Experience Method . 2013 amended tax return 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. 2013 amended tax return However, with respect to partly worthless bad debts, your deduction is limited to the amount you charged off on your books during the year. 2013 amended tax return Partly worthless debts. 2013 amended tax return   You can deduct specific bad debts that become partly uncollectible during the tax year. 2013 amended tax return Your tax deduction is limited to the amount you charge off on your books during the year. 2013 amended tax return You do not have to charge off and deduct your partly worthless debts annually. 2013 amended tax return You can delay the charge off until a later year. 2013 amended tax return However, you cannot deduct any part of a debt after the year it becomes totally worthless. 2013 amended tax return Significantly modified debt. 2013 amended tax return   An exception to the charge-off rule exists for debt which has been significantly modified and on which the holder recognized gain. 2013 amended tax return For more information, see Regulations section 1. 2013 amended tax return 166-3(a)(3). 2013 amended tax return Deduction disallowed. 2013 amended tax return   Generally, you can claim a partial bad debt deduction only in the year you make the charge-off on your books. 2013 amended tax return 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. 2013 amended tax return The charge-off in the earlier year, unless reversed on your books, fulfills the charge-off requirement for the later year. 2013 amended tax return Totally worthless debts. 2013 amended tax return   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. 2013 amended tax return   You do not have to make an actual charge-off on your books to claim a bad debt deduction for a totally worthless debt. 2013 amended tax return However, you may want to do so. 2013 amended tax return 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. 2013 amended tax return See Partly worthless debts, earlier. 2013 amended tax return Filing a claim for refund. 2013 amended tax return   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. 2013 amended tax return If the bad debt was totally worthless, you must file the claim by the later of the following dates. 2013 amended tax return 7 years from the date your original return was due (not including extensions). 2013 amended tax return 2 years from the date you paid the tax. 2013 amended tax return   If the claim is for a partly worthless bad debt, you must file the claim by the later of the following dates. 2013 amended tax return 3 years from the date you filed your original return. 2013 amended tax return 2 years from the date you paid the tax. 2013 amended tax return You may have longer to file the claim if you were unable to manage your financial affairs due to a physical or mental impairment. 2013 amended tax return Such an impairment requires proof of existence. 2013 amended tax return   For details and more information about filing a claim, see Publication 556. 2013 amended tax return Use one of the following forms to file a claim. 2013 amended tax return For more information, see the instructions for the applicable form. 2013 amended tax return Table 10-1. 2013 amended tax return Forms Used To File a Claim IF you filed as a. 2013 amended tax return . 2013 amended tax return . 2013 amended tax return THEN file. 2013 amended tax return . 2013 amended tax return . 2013 amended tax return 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. 2013 amended tax return Under this method, you do not accrue service related income you expect to be uncollectible. 2013 amended tax return Because the expected uncollectible amounts are not included in income, these amounts are not later deducted from income. 2013 amended tax return 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. 2013 amended tax return Service related income. 2013 amended tax return   You can use the nonaccrual-experience method only for amounts earned by performing services. 2013 amended tax return 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. 2013 amended tax return Gross receipts test. 2013 amended tax return   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. 2013 amended tax return If your average annual gross receipts for any year exceeds $5 million, you cannot use the non-accural experience method. 2013 amended tax return   The average annual gross receipts for any year is the average of gross receipts from the year in question and the 2 previous years. 2013 amended tax return For example, if you were figuring the average annual gross receipts for 2013, you would average your gross receipts for 2011, 2012, and 2013. 2013 amended tax return Interest or penalty charged. 2013 amended tax return   Generally, you cannot use the nonaccrual-experience method for amounts due on which you charge interest or a late payment penalty. 2013 amended tax return However, do not treat a discount offered for early payment as the charging of interest or a penalty if both the following apply. 2013 amended tax return You otherwise accrue the full amount due as gross income at the time you provide the services. 2013 amended tax return You treat the discount allowed for early payment as an adjustment to gross income in the year of payment. 2013 amended tax return Change in accounting method. 2013 amended tax return   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. 2013 amended tax return See Form 3115 and the Instructions for Form 3115 for more information. 2013 amended tax return 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. 2013 amended tax return The amount you include is limited to the amount you actually deducted. 2013 amended tax return However, you can exclude the amount deducted that did not reduce your tax. 2013 amended tax return Report the recovery as “Other income” on the appropriate business form or schedule. 2013 amended tax return See Recoveries in Publication 525 for more information. 2013 amended tax return Net operating loss (NOL) carryover. 2013 amended tax return   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. 2013 amended tax return A bad debt deduction that contributes to a NOL helps lower taxes in the year to which you carry the NOL. 2013 amended tax return For more information about NOLs, see Publication 536. 2013 amended tax return Also, see the Instructions for Form 1045, and the Instructions for Form 1139. 2013 amended tax return Prev  Up  Next   Home   More Online Publications