DavidS127
Expert Alumni

Business & farm

Only report the income you actually received in 2019.  The $18K you were owed but never collected is not income for you.  By not reporting it as income, you recognize that you "lost" that money. 

 

This assumes you are a cash basis taxpayer.  The mechanics for an accrual basis taxpayer are different, but you end up in the same place---you aren't taxed on income you never received.

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