I made a deposit with a contractor to do work and the contractor is insolvent and I am unable to recover the deposit. Can this be considered non business bad debt?
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I made a deposit with a contractor to do work and the contractor is insolvent and I am unable to recover the deposit. Can this be considered non business bad debt?
posted
January 20, 202510:56 PM
last updated
January 20, 202510:56 PM
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I made a deposit with a contractor to do work and the contractor is insolvent and I am unable to recover the deposit. Can this be considered non business bad debt?
Yes, a deposit given to a contractor that did not perform the work and is now insolvent is considered a nonbusiness bad debt.