Discussion:Judgements

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Kochhammond (talk|edits) said:

18 January 2006
I have been awarded a judgement for unpaid rent and damages, but cannot collect. Is there a way to deduct this amount on my Federal and/or State income taxes?

Counterhrh (talk|edits) said:

18 January 2006
If you are a "cash basis" taxpayer, the answer is NO!

This is because you never reported the unpaid rent and damages as taxable income, and therefore have no allowable deduction.

TLF (talk|edits) said:

22 January 2006
I agree. You must have included the income on your return in order to take a deduction for a bad debt.

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