Re: how much to bill?

**"Barbara Martin" m*@pa.adelphia.net**

Although certainly I am not an accoutant, I am not so sure you can deduct it
as bad debt unless you had already previously included it as income -- if
you are on a cash basis, it doesn't work out because you would only book it
as income when received. So you can't deduct something you never had.:(

You may have to cut and paste the url below to make it work right. Here is
the IRS explanation on business bad debt.
http://www.irs.gov/formspubs/page/0,,id%3D12055,00.html

Barbara M. Martin
"Fruitful Multiplication" Mid-Atlantic Garden Report:
http://nationalgardening.com/regional/report13.html
Now at Cottage Garden: "Raking Leaves"
http://www.suite101.com/article.cfm/253/96737
Co-Owner, Gardens List http://www.kiva.net/~dorsettm/notes.html
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----- Original Message -----
From: "Doreen Howard" <doreenh@ticon.net>
To: <gardenwriters@lists.ibiblio.org>
Sent: Monday, December 02, 2002 11:31 AM
Subject: Re: [GWL] how much to bill?

> Nan's hypothetical case points out the need to have a contract signed
before
> any work is done.  I've learned the hard way and now will only write if a
> contract is executed. Contracts guarantee payment, and if payment is not
> forthcoming (such as a bankruptcy), you have legal documentation to write
> off the fee as a bad debt on your income tax. SNIP

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