Re: how much to bill?

**"Doreen Howard" d*@ticon.net**

You can deduct the expenses involved with preparing the article or project.
Sorry I was not clear. In the case of a declared bankruptcy where you are a
named creditor, the IRS allows it as a bad debt deduction.  The following is
cut and pasted from the IRS site you listed, Barbara.

Bankruptcy claim. If a person who owes you money becomes bankrupt, the
amount you can deduct as a bad debt is the amount owed to you minus the
amount you receive from distribution of the bankrupt person's assets.

I was audited in the year I included a bad debt deduction from a bankruptcy
of a client.  The auditor didn't even blink at it when he saw the bankruptcy
papers.  Incidentally, the IRS ended up owing me money after the audit.  It
pays to save EVERY receipt.
Doreen Howard

----- Original Message -----
From: "Barbara Martin" <martin@pa.adelphia.net>
To: <gardenwriters@lists.ibiblio.org>
Sent: Monday, December 02, 2002 11:11 AM
Subject: Re: [GWL] how much to bill?

> 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
> My Bonsai Potato Photos  http://www.suite101.com/topic_page.cfm/253/3890
> ----- 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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>

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