As a tradesmen, can I claim for any tax deductions if a builder goes bankrupt and i am owed money, as a pty Ltd.
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If the income has already been declared (accrual method) then write off as bad debt.
If not, then you are on cash basis - nothing to write off because the amount was never declared as income.
Your accountant will explain this to you.
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If the income has already been declared (accrual method) then write off as bad debt.
If not, then you are on cash basis - nothing to write off because the amount was never declared as income.
Your accountant will explain this to you.
That did not answer the question you just told me to write it off as bad debt
Bruce is correct...
The only way you can get a deduction is to write it off as a bad debt if the amount the company is owed has been included as income.
So it cancells itself out the same as if the company does not include the amount owed as income.
There are no other available tax deductions under those circumstances.
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