Customer bankruptcy losses
Varies
Can You Write Off Customer Bankruptcy Losses?
Short answer: Yes when the receivable was in income and becomes worthless in the bankruptcy.
Deduct in the year it becomes worthless, not when filed.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00707
medium risk
Customer bankruptcy losses
Varies
General Business
Other Expenses
Business Write-Off Questions
Yes when the receivable was in income and becomes worthless in the bankruptcy.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes when the receivable was in income and becomes worthless in the bankruptcy. Deduct in the year it becomes worthless, not when filed.
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- Business Write-Off Questions
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