Practically every small business has receivables that it cannot obtain from clients. If your small business doesn't have any such receivables, consider yourself lucky. For those small businesses that suffer from uncollected receivables, solace can be taken from the fact you can claim a tax deduction.
Bad Debt Tax Deduction
A small business can write-off bad debt losses if it meets nominal requirements. To claim such a tax deduction, the following must be shown:
A. The existence of a legal relationship between the small business and debtor;
B. The receivables are worthless; and
C. The small business suffered an actual loss.
Proving there is a legal relationship between the small business and debtor is fairly simple. You must simply show that the debtor has a legal obligation to make a payment. Most businesses issue invoices or sign contracts with debtors and these documents suffice to prove the legal relationship. If you are not putting your business relationships in writing, you should begin doing so immediately.
Proving receivables are worthless is slightly more complex. A small business is required to show that the debt has become both worthless and will remain so. You must also show that you took reasonable steps to collect the receivables, but you are not necessarily required to go to court to meet this requirement. A clear example where you would meet this requirement is if the debtor filed bankruptcy.
While proving that you suffered a loss may sound like the easiest requirement to meet, the issue is a bit more complicated. The Tax Code defines the loss as an amount that is included in your books as income, but is never collected. A classic example of such a situation would be a manufacturer that provides products to retailers on credit. The manufacturer can show a real loss if the retailer files bankruptcy.
Unfortunately, there is almost no way to claim a loss if you provide hourly services and use a cash accounting method. The IRS does not consider the expenditure of time and effort to be a sustained economic loss.
Small businesses suffer all to often from uncollected receivables. If you failed to claim such losses as a tax deduction during your last three tax filing years, you should file amended tax returns to get a refund.
Write Off Bad Debts
For Good Relationships with Yourself
You can write bad poetry, can you not? Why do so? Here are three reasons:
1. If you think it doesn't have to rhyme or be any good, you will write a poem each time you are struck by awe, struck in the gut, struck in the heart for good or bad.
2. If you write some, you will read one of mine. (below) Then you will start a heartfelt relationship with me.
3. You will soon afterward discover what is really important to you in all your relationships.
Many people assume that poetry is hard to understand or boring. Some academic poems are boring because they are simply showing off erudition. But poems about momentous or weird little experiences that strike the poet are wonderful to hear. Some are better than monologues from well known stand-up comics.
Poetry likes a strong feeling and the courage to express it with the power of that feeling. No holding back. Flat out condensation of the moment.
When you write bad poetry you feel gloriously alive. You improve all your relationships.
Eventually, you may re-write and turn your poems into some really good stuff.
Poetry won't make you money, but it will make you rich. Here's one of mine that set me free. See if you can tell how it set me free. If you have any questions, write to me. evycole@hughes.net
CRAVINGS by Evelyn Cole
I want to put out bowls of candy/to welcome every guest/ all kinds of sweets/ dripping with decadence
to offer red wine with legs/ stuffed grape leaves, Retsina, Italian prawns/carrot flan, Incan fire dip
and succulent salads /chilled ready to serve/ spinach, asparagus, pistachios /all fresh aphrodisiacs
marinated meats/ ready to grill to any taste/ from rare to rubber/ spiced tofu for some
a full shelf of pies I've just baked /with perfect crusts /Tiramisu and mocha mousse too /and apricot clafoutis
I have a craving for candy I don't eat/a passion for cooking concoctions others won't touch/ a yearning for money to give it away/
Why?
A craving to please /to ease
Why? A craving to give /to live?
Ah, Do I need to put out /or die?
~~~
That last stanza took me by surprise.
Here is what the former U.S. poet laureate, Stanley Kunitz, says about poetry. It's wild and wonderful.
Saturated with Impulse Stanley Kuntiz from ?The Braid?
"So much of the creative life has its source in the erotic. The first impulse is strongly erotic, but then one becomes reflective--a philosophic human being, an explorer--and then as one grows older and older there's a need to renew that energy associated with erotic impulse.
"A poet without a strong libido almost inevitably belongs to the weaker category; such a poet can carry off a technical effect with a degree of flourish, but the poem does not embody the dominant emotive element in the life process. The poem has to be saturated with impulse and that means getting down to the very tissue of experience. How can this element be absent from poetry without thinning out the poem?
"That is certainly one of the problems when making a poem is thought to be a rational production. The dominance of reason, as in eighteenth-century poetry, diminished the power of poetry.
"Reason certainly has a place, but it cannot be dominant. Feeling is far more important in the making of the poem. And the language itself has to be a sensuous instrument; it cannot be a completely rational one. In rhythm and sound, for example, language has the capacity to transcend reason; it's all like erotic play.
"That's the nature of aesthetic impulse, aesthetic receptivity. Whether you're walking through the garden or reading a poem, there's a sense of fulfillment. You've gone through a complete chain of experience, changing and communicating with each step and with each line so that you are linked with the phenomenon of time itself. The erotic impulse is so basic to human experience that we can never be free from it, even in old age."
Both Richard A. Chapo & Evelyn Cole are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Richard A. Chapo has sinced written about articles on various topics from Finances, Tax Deductions and Tax. Richard Chapo is with BusinessTaxRecovery.com - information on .. Richard A. Chapo's top article generates over 22200 views. to your Favourites.
Evelyn Cole has sinced written about articles on various topics from Brain Power, Subconscious Mind and Alternative Medicine. ? Evelyn Cole, MA, MFA, The Whole-mind Writer, evycole@hughes.netCole's chief aim in life is to convince everyone to understa. Evelyn Cole's top article generates over 90500 views. to your Favourites.
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