Message Font: Serif | Sans-Serif
No. of Recommendations: 0
What is the proper timing for determining the date of an uncollected debt? For example: An uncollateralized loan of 200,000 is made form person a to person b with a repayment schedule, late fees and interest. Person b defaults and does not repay person a. Person a tries to collect with the help of an attorney. A civil suit is contemplated. Person b says he cant and will not pay. Time elapses and person b does not pay for 1 to 4 months. In the next tax year person b files for bankruptcy. Bankruptcy attorneys are now deposing the parties involved. There may be fraudulent transfers involved. Which tax year is the uncollected debt? What determines the timing? The day of the failed payment, the day of verbalized I cant and will not pay, the day of civil suit filing, the day of bankruptcy declaration, the day of adjudication etc
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.