bad debt tax loss
The IRS often challenges tax loss deductions. In many cases, it does so by challenging the year in which the loss is allowable. It can be difficult to determine which year the loss should be taken. When an asset is losing value over time, there is a…
In Scheurer v. Commissioner, T.C. Memo. 2017-36, the court denied a bad debt deduction for a loan that an unrelated third party would not have made given that the borrower had bad credit. This is one of the factors the courts consider in deciding whether a bad debt deduction is allowable. The case adds to […]
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