pay you later (even worse)

[David Ilvedson]

It is sort of like not being able to deduct labor donations...tune a piano for a church for free?  You can't deduct what your fees would be.   You could tune, get paid, then donate the $ back...

David Ilvedson, RPT
Pacifica, CA  94044

----- Original message ----------------------------------------
From: "Robert Scott" <fixthatpiano at yahoo.com>
To: pianotech at ptg.org
Received: 4/14/2008 4:24:02 PM
Subject: Re: pay you later (even worse)


>Regarding a tax deduction for bad debts, Gerald asked:

>> Ok Robert. But it can be deducted. Right?

>No, not unless you also count it as income, in which
>case the deduction merely cancels out the addition of
>that income, and it will be the same as if you never
>had the job in the first place.  And you would only do
>that if you were using the accrual method of
>accounting in your business.  The purpose of the
>deduction is not to reward you for failing to collect
>your fee.  It is to rectify the otherwise unfair
>situation where you were being taxed for income that
>you never received.

>Robert Scott
>Real-Time Specialties



>      
>___________________________________________________________________
>_________________
>Be a better friend, newshound, and 
>know-it-all with Yahoo! Mobile.  Try it now.  
>http://mobile.yahoo.com/;_ylt=Ahu06i62sR8HDtDypao8Wcj9tAcJ