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 ?
A few of the reasons accounts are placed in uncollectible status are:
The cumulative amount of uncollectible premiums totals about 11 trillion yen since the adoption in fiscal 1986 of the current basic pension system covering all public pension programs.
3 of 1 percent of check sales, and payment by check accounts for half the total sales, only one out of every 600 customers will write an uncollectible check (and three fourths of these people will pay for their check if a good verification system is used).
Accordingly, it must report the amounts attributable to the allowance for uncollectible accounts receivable on line 32 (Bad debt expense), and must separately state and adequately disclose the amounts attributable to the reserve for pending litigation and the warranty reserve on line 35 (Other expense/deduction items with differences).
The amount of uncollectible loans was fixed as the collapsed major brokerage's bankruptcy procedure was completed in January.
1 billion yen as long-loss provisions and the amount will be deducted from the central bank's contributions to the government to settle the loan issue when the uncollectible portion of the loans is confirmed.
448(d)(5) temporary regulations as a way to compute bad-debt experience, but was replaced in the amended temporary regulations with the generally less favorable six-year moving-average method (which requires a taxpayer to use total sales versus year-end accounts receivable in determining its uncollectible experience).
It is not the role of the central bank to cover losses in such cases as clearly uncollectible ones," it said.
the excess of the new debt's issue price over the original debt's adjusted issue price) is attributable, in part, to the fact that the taxpayer previously claimed a deduction for partial worthlessness (thus reducing its basis in the debt), and the modification does not alter the fact that a portion of the debt remains uncollectible.
Relative to 1991 and 1993, survey respondents are more likely to reserve for uncollectible accounts, however, they are tending to reserve less as a percentage of receivables.