Sometimes customers or can include clients denmark phone number library simply won’t pay for the product or service you already provid. It doesn’t matter how many statement reminders you send, you may never get that money. These are known as bad debts.
Bad debts, or uncollectible accounts, are money ow to you by a customer or client that you are unable to collect. You can write off bad debts at the end of the first year if it turns out the debt is uncollectible.
Loans to suppliers and clients
Business loan guarantees
Crit sales to customers
For more information on the bad debt ruction and tax law, refer to this IRS publication.
Ndependent contractors
If you hire independent contractors or freelancers for any purpose relat to your business—for instance, taking photos creating and managing sales funnels of products for your online store—the cost of their services is a tax duction.
Always be sure to collect 1099 forms from independent contractors before they start working for you, and file them awb directory properly (you’ll ne to submit one copy to the contractor and another to the IRS before deadline).
