I have a massage business and the insurance company's don't usually pay the full cost, where do I take the write off's.

[bilkyj]

Where do I take write off's that insurance company's do pay for.

[MichaelDC · Accepted solution]

Unfortunately, if you are on the cash basis of accounting, which most small businesses are, whereby you recognize income as received, and expenses as paid, the IRS does not allow a deduction or tax benefit for income not received.

If you were $80 for a massage you normally charge $100 for, you would simply put the amount you were paid ($80).

If you used another method of accounting and claimed $100 of the income, you could at that point write-off the $20, but you're still left with a net $80 of income.

If you have any other details regarding this question, please feel free to post them in the comment section.

[bilkyj]

Thank-you for helping, even if I don't like the answer.

[MichaelDC]

I totally understand and agree. Good Luck!