Bohemia, NY (PRWEB) March 07, 2013
On March 7, Rapid Recovery Solution, leader in commercial collection agencies, issues a response to an article published on Forbes.com. The agency offers advice on handling bad debt for tax reasons.
According to Forbes, some “bad debt[s],” a debt “owed to you” that will never be repaid, can be deducted. “You can only take a bad debt deduction if the amount you were owed was included in your gross income for the year the deduction is claimed or for a prior year,” the article stated. “The debt must have been created or acquired in your business or closely related to your business when it became partly or totally worthless.”
Similar to business bad debts, nonbusiness bad debts should appear as a part of your income or must have been an amount loaned to a third party. “Nonbusiness bad debts must be totally worthless to be deductible; it’s an all or nothing proposition since you cannot deduct a partially worthless nonbusiness bad debt,” the article stated. Gifts or loans from family members or friends aren’t considered nonbusiness bad debts.
John Monderine, CEO of Rapid Recovery Solution, leader in commercial collection agencies, recognizes the tediousness of the process, but he believes it's essential to show evidence that a business debt is truly a bad debt. “Remember to provide documentation that showed you tried to collect the debt,” Monderine says. “Having proof validates the debt’s status as a bad debt to the IRS and this is instrumental to the process.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.