QUESTION
How can I write off my partnership losses from a bad debt the bad debt if I had a contract and rented out my investment property for the entire year
Asked on Feb 27th, 2016 on Taxation - Texas
More details to this question:
The firm had contract with me stay there the entire year but only pay for 6 months I sued them in a court of law and I received a judgment against them but I never received the money. Can I write this off as a bad debt on my partnership tax return form 1065
1 ANSWER
4 Awards
Generally, you can take a loss on a bad debt to a partnership only to the extent that you have basis in the partnership, such as contribution of capital or income to the partnership. I do not know offhand if a bad debt for wages would qualify, but would guess it does. However, if you don't have a basis in the partnership, you could not claim the loss.
Answered on Mar 04th, 2016 at 7:50 PM