Question


juanamann

How to treat $300 payment recieved this year for rental that was due last year.?

For tax purposes. Under the accrual method. A customer paid for rental services this year, but he was supposed to pay it last year. The debt was treated as uncollectable. How to treat this income. Is it taxable this year? What if the debt expense was decucted for last year tax purposes? How would I deal with that?

1 month ago - 2 answers

Best Answer

Chosen by Asker

"Uncollectible" means they never expected to get it. If so, it wasn't counted as income in 2008. If it's not income in 2008, it's income in 2009 when received. The debt expense doesn't change this.

by the tax lady

1 month ago

Asker's Rating: 

Other Answers

You'd have shown it as income, but then deducted it as uncollectable last year. This year you'll just show it as income.

by Judy- 1 month ago