Posted by jba/fl on 3/3/08 9:17am
Msg #237867
my latest EFS bankruptcy notice
I'm listed on sheet #274 of 535 sheets attached to schedule of creditors holding unsecured nonpriority claims. Odd: alphabetized by first name, not last, as I am listed with Judy, Juliannes and Julies. With 5 names per sheet, potentially 2675 unsecured claims.
I suppose I should not hold my breath....
|
Reply by ME/NJ on 3/3/08 3:15pm
Msg #237926
Bad deal for everyone with EFS
We all know any company can fold in a moments notice, I know of a few folks that got stuck with a couple of "thousand" worth of unpaid bills from EFS.
I know we all want to be paid for our service, but if one company owed me a couple of grand and went belly up..It just sucks because now you have to pay the people you owe and the only way to get back that money is when you do your taxes and claim it as a loss.
|
Reply by CopperheadVA on 3/3/08 3:51pm
Msg #237929
Re: Bad deal for everyone with EFS
I'm not a tax attorney, but my understanding is that you can't claim uncollected debts as a loss or a subtraction to your income.
However, if you use the accrual method of accounting, and claim the income as income as soon as you complete the job, then yes you can write the bad debt off. But all that does is put you back to square one, because you already claimed it as income but never collected the payment.
If you use the cash method, where you claim the income only when it's received, then you can't "write off" or subtract the uncollected debt from your income. All you can do is deduct the expenses you incurred while doing the job (toner, mileage, paper, etc.)
Again, I am not a tax accountant so this is not meant to be legal advise - ask your own accountant or tax attorney to be sure.
|
