"John" <John[at]john.com> wrote:

- quote -

As has been stated numerous times above, you can't deduct
something you never received (or paid taxes on). There is no
tax relief here, but you might have a civil action to
pursue.

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"John" <John[at]john.com> writes:

- quote -

'tis a non-event for tax purposes. You will not have to pay
tax on amounts you do not receive. Since the money was
never taxed, in the first place, there is no tax to deduct.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I shouldn't write anything at 5am; sorry for being
incoherent.

They acknowledged the debt and agreed to pay a sum monthly
for 4 years. They paid one years worth, but are now out of
business.

I had to pay income tax on what they paid me. Is there any
way to deduct the bad debt; or, since I never paid any tax
on it, is it simply a non-event?

Thanks.

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"John" <John[at]john.com> wrote
- quote -

They should give you a W-2 for the wages actually paid.

Even if they don't supply you with a W-2, report the wages
you received on your return.

- quote -

That's right.

- quote -

IRS auditor to taxpayer: "No Mr. Smith, you can't take a
million dollar loss because Publishers Clearing House didn't
call you."

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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John <John[at]john.com> wrote:

- quote -

You've got it.

- quote -

Sounds as if your legal expenses, incurred to generate
taxable income for you, could be listed on Schedule A Line
22, where they might or might not provide you with a tax
benefit.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"John" <John[at]john.com> wrote:

- quote -

Can't deduct what you never had

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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- quote -

You pay taxes on the wages as received.

Unfortunately, you have no write-off for the amount owed
you. Since you are on the cash basis, you did not pay taxes
on the salary that you did not receive, therefore, you have
no deduction fo the unpaid portion.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

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"John" <John[at]john.com> wrote:

- quote -

That's the one. You can't "write off" money you never got or
paid tax on.

- quote -

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"John" <John[at]john.com> writes:

- quote -

Bingo!

Phil Marti
Topeka, KS

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- quote -

You are not wrong!!=(:

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I am owed back wages by a company I am no longer with. I
sued them and they agreed to pay me monthly. That lasted a
year, and now they are out of business.

Does this show up on my tax return at all? When they pay me
I have to pay income tax on it, so my guess is that my only
tax benefit from the loss is that I don't have to pay tax on
the money I didn't get.

Hopefully I am wrong about this, and there is some way to
benefit from the write-off. Thanks.

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