pay you later (even worse)

[mccleskey112 at bellsouth.net]

Ok Robert. But it can be dudcted. Right?
Gerald
----- Original Message ----- 
From: "Robert Scott" <fixthatpiano at yahoo.com>
To: <pianotech at ptg.org>
Sent: Monday, April 14, 2008 7:05 AM
Subject: Re: pay you later (even worse)


> Gerald wrote:
>
>> I you don't collect your fee you can use as a tax
>> deduction. All is not lost. It goes in the bad debt
> slot.
>
> If you are using the cash method of accounting then
> there is nothing to deduct, because the lost income
> was never counted in the first place.  In cash
> accounting, income is counted as income when it is
> received, and expenses are counted as expenses when
> they are paid.  The bad debt deduction only applies to
> the accrual method of accounting, where income and
> expenses are counted as soon as they are owed.
>
> Robert Scott
> Ypsilanti, Michigan
>
>
>
> 
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