Posted by Deborah Lewellen on 7/10/09 10:06am
Msg #295293
Miracle of Miracles--Got Paid by Express Financial!!!
I got a check yesterday, cut 6/24/09 for the $450 that EFS gipped me out of (what was it 2-3yrs. ago?) I wrote it off as a loss on my taxes back then, but miracle of miracles, I got a check yesterday for the whole amount they owed me!! I was ecstatic to say the least.
Anyone else get one? I hope some of you get yours, there was aletter with the check stating I was an "Allowed Priority Claim Holder" says also; the check is in an amount equal to 100% of the amount of your allowed priority claim, this check is tndered to you in full.
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Reply by Becca_FL on 7/10/09 10:15am
Msg #295296
They owe me $775 and I sure could use it. Yours is the second post telling of payment in full. I sure hope a check is in my future.
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Reply by Deborah Lewellen on 7/10/09 10:30am
Msg #295299
gosh I hope you get it too, like if there was ever a time when ya really need the money, right?
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Reply by Jim/AL on 7/10/09 10:48am
Msg #295302
Wow, that is great for you Deborah. They owe me $950.00 and it sure would help to get it, times are tough. I was really tempted more than once by the offers to buy my claim for pennies on the dollar, but decidedd to hang in their. Fingers crossed for all whom are owed.
Maybe the light at the end of the tunnel is not a train this time!
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Reply by snoopdogMs on 7/10/09 11:03am
Msg #295306
I held out for my $650 owed. n/m
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Reply by Lee/AR on 7/10/09 12:10pm
Msg #295316
Still waiting for my miracle. Have rec'd a ton of paperwork
but no check.
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Reply by jba/fl on 7/10/09 1:09pm
Msg #295322
Re: Still waiting for my miracle. Have rec'd a ton of paperwork
Same here - cobwebs on mail box.
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Reply by dickb/wi on 7/10/09 2:07pm
Msg #295329
question....if you wrote it off of your taxes did you.....
previously report it as income.......if you haven't reported something as income you cant't deduct what some one owes you as a loss.....you can deduct your expenses for the job but not the amt you should have recd........i am not a tax expert but those who are [my cpa] tell me that is the rule........any cpa's out there........john join in.......
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Reply by notaryinmo on 7/10/09 4:17pm
Msg #295350
Re: question....if you wrote it off of your taxes did you.....
Since you wrote it off as a loss, and have now received the money - you will need to report it as income on your 2009 return.
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Reply by MikeC/NY on 7/10/09 4:25pm
Msg #295353
Not only that, but...
If she's operating on a cash basis, she technically has to amend her earlier return because you can't write off bad debt when you're on cash basis.
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Reply by Linda_H/FL on 7/11/09 12:59pm
Msg #295514
Re: question....if you wrote it off of your taxes did you.....
It should have been reported as income in the year (or prior to the year) it was reported as a loss...no? You can't report a loss of something you never had .... right?
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Reply by MikeC/NY on 7/11/09 5:28pm
Msg #295552
That was my thinking, Linda
If you are accruing, income is booked when earned rather than received. The income would have had to have been reported as earned in 2007 or earlier before you can write it off as a loss on your 2008 return; that's just the way accrual accounting works. If it's earned and written off in the same year, I'm pretty sure it's just a wash rather than a loss.
But on a cash basis, you can't ever write off a loss because you book income when you actually receive it rather than when you earn it. If you never received it, how can you lose it?
I don't think there's much benefit for a small business to be on an accrual basis, but that decision is up to their accountant. I'm not an accountant, but I spent my previous life programming financial systems for a large corporation, so I know about accrual accounting (and what a PITA it can be at the end of the fiscal year....).
Maybe John can jump in on this - his opinion carries a heck of a lot more weight than mine.
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Reply by MikeC/NY on 7/10/09 4:19pm
Msg #295351
Re: question....if you wrote it off of your taxes did you.....
I'm not a CPA, but I know that if you're on cash basis accounting (and most of us are), you book the income when you receive it, so there's no loss to write off since it never hit your books in the first place. The associated expenses are still valid, as far as I know, since that was actual money going out.
If you're on accrual basis accounting, you book the income when you invoice and you carry the receivable as an asset on your books - those are the losses that can be written off as bad debt. I don't think anyone in this business would be operating on an accrual basis.
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Reply by Deborah Lewellen on 7/10/09 4:23pm
Msg #295352
Re: question....if you wrote it off of your taxes did you.....
I actually let my hubby handle the tax things with our CPA, I'm just am good at the record keeping and give him the figures and let them two figure it out.
On this note, EFS never offered me anything like some of you who were offered pennies on the dollar.
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Reply by MikeC/NY on 7/11/09 6:18pm
Msg #295558
Re: question....if you wrote it off of your taxes did you.....
"I actually let my hubby handle the tax things with our CPA, I'm just am good at the record keeping and give him the figures and let them two figure it out."
Ummm - you should at least know what accounting basis your CPA is using for your taxes, because it makes a difference with what you can and cannot do. If you're on a cash basis and the CPA wrote off a bad debt, you might want to consider finding another CPA. We're not talking about a lot of money in this particular instance, but this would send up a red flag for me and I'd be wondering about what other shortcuts he took...
This is just personal opinion, but if it's your business, you really need to be in control. Letting "them two figure it out" is relinquishing control. You don't have to be an expert on tax law, but you should at least know the basics.
Not intended as criticism, just personal opinion - your mileage may vary.
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Reply by MW/VA on 7/10/09 7:43pm
Msg #295377
Congrats! It's great to get money you weren't expecting, isn't it.
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