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http://boards.fool.com/this-loss-is-not-a-quotbad-debtquotas-the-15561249.aspx
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| Subject: Re: Prepayment of Services to a Contractor | Date: 8/14/2001 12:04 PM | |
| Author: kktice | Number: 53324 of 118626 | |
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This loss is not a "bad debt",as the taxpayer did not "loan" the money to the contractor, but paid for services to be rendered. I suppose that there might be an opportunity for a casualty or theft loss deduction from ordinary income- which is deductible first by reducing by $100, then to the extent the the loss exceeds 10% of adjusted gross income. See Internal Revenue Code section 165(h) |
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