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Mary Goret
Apr 1

Are bad debts allowable or dis allowable?

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Apr 1
Bad debts are generally considered as allowable expenses for tax purposes. This means that businesses can deduct bad debts from their taxable income, reducing the amount of tax they owe. However, there are certain criteria that must be met in order for a bad debt to be considered allowable, such as the debt being genuinely irrecoverable and having been included as income in a previous tax return. It is important for businesses to keep detailed records and documentation of bad debts in order to support their deduction claims.

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