Salt Lake Telegram | 1942-01-27 | Page 6 | Bad Debts Bring Balm at Time of Filing Annual Returns

Your Income Tax Tax- Tax Bad Debts Bring Balm a at Time Of Filing Annual nn ua Returns Editors Editor's note This Is the J In a series of articles article explaining provisIons provision ot of state tate and federal Income tax fax laws Being on the wrong end of a bad debt is an unfortunate position but the federal income taxpayer may at leash leasty apply balm to his wounds by charging off his losses in computing his taxes I Debts deducted in returns which are filed on or before midnight of March 16 1942 must have become become be be- come worthless in the 1941 calendar calendar calendar calen calen- dar year To be allowed as a deduction from gross income a bad debt must have been determined worthless worthless worthless worth worth- less within the taxable year for which it is claimed and where I books are kept it also must have been charged off within the same year the United States internal revenue bureau warns The burden is upon the tax tax- I payer to show that a debt claimed as a deduction was without value during the taxable year the bureau bureau bureau bu bu- bu- bu reau adds explaining that a statement statement statement state state- ment should be attached to the return showing the propriety of any deduction If partial worthlessness occurs the taxpayer may claim a deduction deduction deduction deduc deduc- tion to the of loss of value of the debt