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Unpaid Invoices from Clients - How Do You Claim These As Losses For Taxes?

Discussion in 'Business & Tax Advice' started by eshera, Aug 16, 2010.

  1. eshera

    eshera Registered Member

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    I have two large unpaid invoices from business that closed last year before I got paid. I thought I could use those as losses for taxes, but what exactly are they classified as? Everything else seems to have a category, such as home office, vehicle and inventory. Since these are completed websites, are they considered inventory, or how have you done this?

    Any suggestions greatly appreciated!
    Thanks!

    (Found out....you already do by not including them in my income, damn!)
     
    Last edited: Aug 17, 2010
  2. Delboy2424

    Delboy2424 Regular Member

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    Occupation:
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    Bad debts - write off in your i&E as a loss against income and against your debtors on your balance sheet.