bad debt

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Related to uncollectible: uncollectible debt

bad debt

n. an uncollectible debt. The problem is to determine when a debt is realistically dead, which means there must be some evidence of uncollectibility or a lengthy passage of time. Discharge in bankruptcy, the running of the statute of limitations to bring a lawsuit, disappearance of the debtor, a pattern of avoiding debts or the destruction of the collateral security can all make a debt "bad." For income tax deduction purposes such a debt in business is deductible against ordinary income (found in Schedule C) and such a personal debt is deductible against short-term capital gains. A debt due for services rendered is not a bad debt for tax purposes, since there is just no income on which to be taxed.

bad debt

noun dishonored bill, inconvertible bill, irreeeemable bill, irretrievable debt, loss, outstanding debt, protested bill, uncollectible debt, write-off
Associated concepts: bad debt loss, bad debt tax deduction
See also: nonpayment
References in periodicals archive ?
Uncollectible status is actually the best of both worlds, since it carries no threat of forced collection activity and yet does not toll the collection statute of limitation.
Compare and contrast accounting for (1) warranties, (2) equipment returns, and (3) uncollectible accounts.
This report focuses primarily on (1) actions taken by FMS on uncollected nontax debts returned from its PCA contractors and (2) actions taken, if any, by FMS and the Office of Management and Budget (OMB) to ensure that federal agencies are reporting their eligible uncollectible nontax debts to IRS as income to debtors.
TransUnion Collection Prioritization Service identifies uncollectible accounts, rank-orders accounts most likely to be recovered and offers the largest number of credit characteristics available in the market today, according to the company.
With a large, professional factor, the dilution rate (uncollectible accounts rate) may actually improve as a result of the management services the factor provides.
"Clearly, the answer is not to continue to ratchet-down pharmacy reimbursements and increase uncollectible copayments; this only impacts the pharmacies' bottom line and will result in decreased availability of pharmacy services to underserved communities."
The operating loss included write-downs of a total of USD19.8m and a USD3.1m charge for estimated uncollectible trade receivables.
The resulting press, combined with charge-offs for uncollectible loans of 10.3 percent or more, led to Mehta's announcement that he would leave as soon as a successor could be found.
The entire amount of money is believed to have turned uncollectible, thereby causing financial damage to the prefecture.
Earnings reflect some $4.6 million in expenses related to a proposal to take the company private and a provision for uncollectible receivables.
In addition to the items described above, the company recorded in the fourth quarter incremental operating expenses related to provisions for benefit-related costs, primarily adverse development in self-insured employee health coverage, of $21.5 million and an additional provision of $9.1 million related to accounts receivable which are deemed uncollectible. The company's fourth quarter EBITDA, excluding impairment of assets and other charges as well as the additional provisions for benefit related costs and uncollectible accounts receivable, was $49.3 million, compared to $54.7 million in the preceding third quarter.
They arrest political momentum for intrusive government policies by accentuating cost consciousness at the grass roots level, attenuating growth in the number of uninsured, returning the benefits of a positive physician-patient relationship, and alleviating provider charity and uncollectible billings problems.