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New Member
posted Jun 4, 2019 1:53:05 PM

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.

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

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1 Best answer
New Member
Jun 4, 2019 1:53:07 PM

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.

3 Replies
New Member
Jun 4, 2019 1:53:07 PM

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.

New Member
Jun 4, 2019 1:53:08 PM

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

New Member
Jun 4, 2019 1:53:09 PM

I totally understand and agree. Good Luck!