Donald, a cash basis dentist, had $7,000 of uncollectible accounts receivable in 2018.Because Donald had always been a cash basis taxpayer, he had not reported the $7,000 in taxable income when the services were performed.How much of the $7,000 bad debt can Donald take as a bad debt deduction on his 2018 tax return? Explain.

Question

Quizplus · Accepted Answer

The Answer of Donald, a cash basis dentist, had $7,000 of uncollectible accounts receivable in 2018.Because Donald had always been a cash basis taxpayer, he had not reported the $7,000 in taxable income when the services were performed.How much of the $7,000 bad debt can Donald take as a bad debt deduction on his 2018 tax return? Explain.

Donald, a Cash Basis Dentist, Had $7,000 of Uncollectible Accounts