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Business Bad Debt Deduction – Paul Gaulkin CPA

debt written on chalk board

The deductibility of a bad debt solely depends on the character of the underlying debt. In the event the bad debt is business related, it is fully deductible by the taxpayer from gross income as an ordinary business expense in the year the debt becomes either partially or completely worthless. If it is partially worthless, only the part of the debt that is not expected to be collected can be deducted. Non Business Bad Debt In the event the debt … Read more

Is It Time To Settle That Debt

Debt settlement is the process of paying some of what you owe to either a creditor or collector. Settling a debt effectively cancels it. The settlement option has become more common over the past few years, thanks to aggressive advertising. Settlements are reported to the credit reporting agencies and considered serious derogatory items by FICO and other credit scoring systems. They’ll likely result in lower credit scores, though most debtors are already in arrears. How To Settle Your Debt Almost … Read more

The Student Loan Bailout

student loan bailout

Students who take out loans for their higher education have many struggles—unemployment, expensive tuition, and the cutting of subsidized loans for graduate programs. However, a Presidential order, nicknamed the Student Loan Bailout, could help many students out of their loan rut—and Congress may not even need to approve it. Student Loan Consolidation It’s imperative to understand that consolidating private loans together with federal loans is next to impossible. Federal Family Education Loans issued by banks can be consolidated with direct … Read more