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If the debt is cancelled, you will get a 1099 C, which is income for the amount forgiven. If your the one charging off....actual charge offs (not accrued) are business expenses and deductible when all events where collection is considered impossible. Undertanding, that all your getting back is the amount you probably already paid tax on expecting as income (under accrual basis) or a small portion of the amount you actually lost if a cash basis accounting.
What else can I help you with?
Why does paying off accounts payable not affect net income?
Paying off accounts payable not affect net income because it is charged to income statement already at time of purchases now it is just the payment of cash which charge cash only.
Are taxes due for a charge off?
If what your asking is really
Are federal corporate income taxes deductible for state income taxes?
In general, states do not allow a deduction for federal income taxes as most states "piggyback" off of federal taxable income as the beginning of the state income tax calculation. However, the states of Alabama , Iowa , Louisiana , and Missouri have variations of state taxable income that allows for some potential deduction for federal income taxes. Each of these four states has its own unique methodology for the deduction and each place certain restrictions on the ability to take the deduction.
Why do they take off so much taxes from someone who is single?
Because a single taxpayer under that age of 65 with no dependents is only allowed to have 9350 of income in the year 2009 and 2010 free of federal income taxes.
When did taking deductions off income taxes begin?
well in the late 1700's I started giving out income tax and I have been giving them out for the past 400 years
Why does paying off accounts payable not affect net income?
Paying off accounts payable not affect net income because it is charged to income statement already at time of purchases now it is just the payment of cash which charge cash only.
Are taxes due for a charge off?
If what your asking is really
Can you write off discounts on your taxes?
No, you cannot write off discounts on your taxes. Discounts are not considered taxable income, so they cannot be deducted on your tax return.
Do you pay taxes on pension at 65 years of age?
this depends on how much you make (ie other income) and not on the age of a person. There is no cut off age to taxes but depending on the income level there may not be any taxes that need to be paid.
Can you write off daycare expenses on your taxes?
Yes, you can potentially write off daycare expenses on your taxes as a childcare tax credit or deduction, depending on your income and specific circumstances.
Can you write off the purchase of used equipment on your taxes?
Yes, you can typically write off the purchase of used equipment on your taxes as a business expense, which can help reduce your taxable income.
Are federal corporate income taxes deductible for state income taxes?
In general, states do not allow a deduction for federal income taxes as most states "piggyback" off of federal taxable income as the beginning of the state income tax calculation. However, the states of Alabama , Iowa , Louisiana , and Missouri have variations of state taxable income that allows for some potential deduction for federal income taxes. Each of these four states has its own unique methodology for the deduction and each place certain restrictions on the ability to take the deduction.
Can you write off a judgment on your taxes?
I assume the judgment is against you. If you held the judgment, you will have received money and that may or may not be income. If you pay a judgment against you, whether or not you can "write it off" will depend entirely on what kind of judgment it is. Also, you may be able to write it off for state tax purposes but not federal and vice versa. Usually, paying most judgments does not affect taxes.
Can I write off donations on my taxes?
Yes, you can write off donations on your taxes if you itemize your deductions. This means you can deduct the value of your charitable donations from your taxable income, potentially lowering your tax bill.
Why do they take off so much taxes from someone who is single?
Because a single taxpayer under that age of 65 with no dependents is only allowed to have 9350 of income in the year 2009 and 2010 free of federal income taxes.
Can you write off 401k contributions on your taxes?
Yes, you can typically deduct 401k contributions from your taxable income when filing your taxes, which can lower your overall tax liability.
When you sell property less than you gave do you get to take it off your income taxes?
Not from current Income. But it can setoff the Capital Gains and hence Capital gains tax.
