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This digital document is an article from The Tax Adviser, published by American Institute of CPA's on August 1, 1994. The length of the article is 4910 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Taxpayers wishing to claim worthless loans made to a corporation as business bad debt deductions must show that there was a bona fide debt and that the debt was incurred connected to the taxpayer's trade or business. A written agreement accounting for regular payments and interest will generally show that an advance or loan guarantee resulted in a bona fide debt. To receive ordinary loss treatment, as opposed to short term capital loss treatment, the taxpayer will have to be in the business of buying corporations or show that continued employment with the company was the dominant motivation for making the loan.

Citation Details
Title: Arguing the case for a business bad debt deduction.
Author: David E. Zinneman
Publication: The Tax Adviser (Magazine/Journal)
Date: August 1, 1994
Publisher: American Institute of CPA's
Volume: 25 Issue: n8 Page: 459(7)

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