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The services themselves cannot be deducted for a cash business, but can expenditures in performing the services be deducted?

2007-02-18 03:11:03 · 2 answers · asked by Stewart A 1 in Business & Finance Taxes United States

for clarity: I provided software consulting services to a company that hasn't paid me.

2007-02-18 07:40:15 · update #1

2 answers

Yes, the expenditures can be deducted;better have good records.
If invoices, and I hope this isn't true, aren't collected--you might have a "bad money," deduction; again, keep all records of attempts to collect etc.
Your question was not real clear. I thought at first you meant you wanted to deduct for services you'd not paid for yet.
Double check w/a tax advisor; that too is deductible along w/the gas going and coming!
Let me know how it worked out.

2007-02-18 03:19:41 · answer #1 · answered by DC 3 · 0 0

If you claimed the invoices as income, then yes you can deduct them if you didn't get paid. If they were never claimed as income, then no you can't.

2007-02-18 12:09:15 · answer #2 · answered by Judy 7 · 1 0

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