My small LLC is owed for services rendered, Can I deduct the amount owed to me as a Misc. business expense or is there another way to deduct it.?

[MichaelL1 · Accepted solution]

Your LLC is most likely on the cash basis, so you report income when received and deduct it when paid.

If that is the case, then it has not been reported as income so it cannot be deducted.  All the costs associated with the work completed has already been deducted.

Now the other method is Accrual method where sales are reported when made, versus when the money is received.  If this is true in your case, and the income has been reported from this sale, and you are now sure it is noncollectable (after actions have been taken to collect it) then you can write it off, as business bad debt.