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My accountant told me I could not wright off this type of loss?

  • I have been in business for a few years now and I'm a S CORP. I have had a fee people this year who did not pay me for my services. I have contracts with them for over $5,000. My accountant told me I could not wright off this type of loss, and it part of being in business. Is this true?

  • Answer:

    That's correct. You don't get a deduction for income that was never received in the first place. Whatever costs you incurred in this project have already been expensed and that's all the deduction that you get.

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