I am a self employed sales rep. One of my suppliers never payed me. I won a judgement against him and he filed for Chapter 7. I have professional insurance and submitted the claim to them as an uncollectable acct receivable. If they pay the claim is the payment a taxable event? I was not able to deduct the nonpayment of receivables on my taxes as I use cash basis. I look forward to anyone's comments. Thanks
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Yes it is taxable ... they paid you instead of the client ... either way you still got paid. The prior uncollectible acct is now collected via the insurance payout.... they will most likely be sending a 1099-misc for that income.
Yes it is taxable ... they paid you instead of the client ... either way you still got paid. The prior uncollectible acct is now collected via the insurance payout.... they will most likely be sending a 1099-misc for that income.
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