The Ninth Circuit, affirming the Tax Court, recently held that to deduct a nonbusiness bad debt, the debt must be “wholly worthless,” and if the debtor reports cancellation-of-debt (COD) income, the ...

FOR many businesses, unpaid receivables are an unavoidable part of operations. Whether arising from unpaid invoices, defaulted loans, or broken payment promises, bad debts can significantly affect a ...

Borrowing has become a normal part of life for most people, especially as everyday costs continue rising. Whether it's groceries, gas or housing, many Americans are now relying more heavily on credit ...

The Tax Court found that advances made by Anaheim Arena Management LLC (AAM) did not constitute bona fide debt and therefore upheld the IRS’s disallowance of AAM’s bad-debt deduction for the advances.

Debt is often discussed in negative terms, but debt isn’t just good or bad. It falls on a spectrum, and how you manage it plays a big role in how it impacts your finances. Bad debt is usually ...