Bad Credit May Result in Disallowance of Bad Debt Deduction

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 […] The post Bad Credit May Result in Disallowance of Bad Debt Deduction appeared first on Houston Tax Attorney.
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