What BAD DEBTS means: Business accounts receivable that have been included in income in a prior year that are uncollectible, legally binding debts owed to the taxpayer that are totally worthless and uncollectible, and debts the taxpayer must pay that he or she guaranteed in connection with his business or for a profit may be deductible as bad debts.
- Definition Basis:
- Dictionary to an asset from which gain or loss is determined for income tax purposes when the asset is sold. For assets acquired by purchase, basis is cost. Special rules govern the basis of property received bad debts definition.
- Definition Bankruptcy:
- Dictionary For tax purposes, a formal petition filed in a Bankruptcy Court under Chapter 7, 11, 12, or 13 of Title 11 of the U.S. Code bad debts explain.
- Definition Business Gifts:
- Dictionary gifts to a taxpayer's clients or other business associates made in the course of the taxpayer's trade or business. They must be ordinary and necessary to the taxpayer's business. The bad debts what is.
- Definition Basis Of Stock:
- Dictionary amount paid for the stock. If the stock is received as a gift, basis is generally the basis of the previous owner or the fair market value when received. The basis of inherited stock is usually its bad debts meaning.
How works Bad Debts meaning in Tax definitions B .
