Thank you MaryK I really appreciate your response. I have a follow-up to your answer as I read the IRS document. I am sole proprietor landlord, have claimed income for rent from prior year tax period, and generally use the cash method. The article does state there are 2 avenues for business bad debt claims using charge-off method and non-accrual experience method. Even though I am sole proprietor and this is personal property that is rented out, does this still allow me to claim later using 1040-X. Since I am accruing losses of the duration of rental (when considering all costs considering depreciation), would it be best to still claim this business bad debt later? The article still seems a bit ambiguous.
