Martha,an accrual-method taxpayer,has an accounting practice.In 2014,she performs tax analyses for Arnold and sends him an invoice for $10,000.In 2015,Martha sells her practice and all accounts to David.Arnold's debt becomes worthless that year after David has purchased the practice.The result is

Question

Quizplus · Accepted Answer

David, who purchased the practice and the accounts, is the one who can deduct the business bad debt when Arnold's debt becomes worthless in 2015.

Martha,an Accrual-Method Taxpayer,has an Accounting Practice