topic Can I deduct a bad check on my business expense? in Business & farm

Can I deduct a bad check on my business expense?

trish-feinberg — Thu, 18 Mar 2021 18:57:34 GMT

bad checks

Re: Can I deduct a bad check on my business expense?

MinhT1 — Thu, 18 Mar 2021 19:12:29 GMT

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.

Re: Can I deduct a bad check on my business expense?

VolvoGirl — Thu, 18 Mar 2021 19:14:48 GMT

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