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Am I entitled to deduct as bad business debt the difference

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between my usual and customary...
Am I entitled to deduct as bad business debt the difference between my usual and customary fee and the negotiated contracted rate from medical insurance companies of which I am a preferred provider?
Submitted: 2 years ago.Category: Tax
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10/29/2015
Tax Professional: Barbara, Enrolled Agent replied 2 years ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,438
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

A business bad debt is money that is owed to you that you cannot collect.

In your case, the difference between your usual and customary fee and the negotiated, contracted rate that you receive from medical insurance companies is not money that is owed to you, and therefore, not a business bad debt.

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 2 years ago

Just following up with you to see if you have any other questions. If so, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts JustAnswer to compensate me for a portion of the fee you have previously paid.

Best regards,

Barb

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Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
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