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New Member
posted Mar 18, 2021 11:57:34 AM

Can I deduct a bad check on my business expense?

bad checks

0 2 1116
2 Replies
Expert Alumni
Mar 18, 2021 12:12:29 PM

If you are on a cash basis, you do not deduct a bad check as a business expense. As the bad check was not paid, it is not included in your income and you cannot deduct it as an expense. In fact it is already deducted from your income by not being paid.

Level 15
Mar 18, 2021 12:14:48 PM

But if you do include it in income you can deduct it as a misc other expense.  It will be a wash.