Publication 535 |
2001 Tax Year |
Introduction
If someone owes you money you cannot collect, you have a bad debt.
There are two kinds of bad debts--business and nonbusiness. This
chapter covers business bad debts.
Generally, a business bad debt is one that comes from operating
your trade or business. You can deduct business bad debts on your
business tax return.
All other bad debts are nonbusiness bad debts and are deductible
only as short-term capital losses on Schedule D (Form 1040). For more
information on nonbusiness bad debts, see Publication 550.
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