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Financial Planning / Tax Strategies


Subject:  Re: Prepayment of Services to a Contractor Date:  8/12/2001  12:29 PM
Author:  tkmbt82 Number:  53264 of 129503

What happened to the contractor, did they skip town or go bankrupt?

Some quick ideas: If the contractor went bankrupt, you may have a bad debt loss, i.e. short-term capital loss treatment. If the contractor skipped town you may have a theft loss, i.e. schedule A (form 1040) loss.

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