Deduction of receivables in the income tax return
December 19, 2009 | 20,00 EUR | answered by Irmingard Huber-Stempfel
The situation is as follows:
Two years ago, I lent money to a (then) good friend and we also made a contract about it. In the summer of 2009, he filed for personal bankruptcy. I then registered my claim with the insolvency administrator and last week I received notification that I am on the list of creditors and my claim has been accepted, with a payout of less than 1%, expected sometime in 2010. My lawyer now says that I can claim this loss on my taxes.
My question is:
In what form can I claim this loss on my taxes and what is the tax law basis for calculating the specific depreciation or consideration in the advertising costs?
Dear inquirer,
In the context of the initial consultation, I am happy to answer your question. The money demand can only be claimed for tax purposes if it is a demand from the business sector and you are a balance sheet entrepreneur.
If this is the case, adjust the value of the receivables by 100% (individual value adjustment). The depreciation made is a business expense and tax-deductible.
If it is not a business demand, there is no possibility to treat this loss as tax-deductible.
The answer was given based on the facts presented. Any change in the facts will affect the legal outcome of the answer.
Best regards,
I. Huber-Stempfel
Lawyer and Tax Advisor
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