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New Member
posted Jun 6, 2019 4:20:17 AM

I am straight commission and self employed. A company I did work for didn't pay me... can I take that amount as a loss? it was never income that actually came in...

Since this company never actually paid me, and the only place to put in a loss is as returns, refunds, etc.  Can I take this as a loss under Business Income and Expenses?

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1 Best answer
Expert Alumni
Jun 6, 2019 4:20:18 AM

You cannot claim the unpaid commission as a business expense or deduction.

As you did not receive the unpaid commission, you do not report it as income and do not pay tax on it. This is the reason why you cannot claim it as a deduction or a loss.

4 Replies
Expert Alumni
Jun 6, 2019 4:20:18 AM

You cannot claim the unpaid commission as a business expense or deduction.

As you did not receive the unpaid commission, you do not report it as income and do not pay tax on it. This is the reason why you cannot claim it as a deduction or a loss.

New Member
Jun 6, 2019 4:20:19 AM

First this says I can claim it and then it says I cannot claim it...

Expert Alumni
Jun 6, 2019 4:20:21 AM

Sorry it was a typo error. You cannot claim the unpaid commission.

New Member
Jun 6, 2019 4:20:23 AM

If you are a cash basis taxpayer you cannot take a loss. However, you should deduct all business expenses that you incurred with respect to this job.