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Re: Schedule C - can one include uncollected receivables as a loss against earnings to lower one's profit in a business? How? Where?

My wife has a counseling/therapy business set up as a sole proprietor which we include in our personal joint tax filing using a Schedule C.

There are several circumstances in which she incurs losses in the business. Can she use any of these examples to lower her profit in the business (and, if so, how?):

- clients or insurance companies do not pay.

- clients pay less then her regular fee.

- insurance companies "downcode" a diagnosis to something which pays less then what she has determined to be the correct diagnosis and payment schedule.

Thanks in advance.

Todd Citron
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