Show 1 I I I 1 I INCOME TAX FACTS PACTS I t t No o 15 Bad debts constitute a considerable Item In 11 the returns ot of many and may be treated in one of to t 1 08 i ai 1 by Q a a deduction from Income In respect re of ot debts ascertained to t ho be worthless In whole or in III part or 2 2 by a deduction from income of or nn an addition lon to a reserve toi tot bad debts debt When satisfied that a debt li Is i recoverable recoverable erable only In part put the tho Commissioner of Internal lle may allo allo alioe such a debt to be charged oft off in part parL Parti Partial ded deductions are arc allowed ed with respect to specific d debts only The Tho taxpayer must mu be able to show with lIh a reasonable degree d gree of ot certainty the part that Is IsI Where a II taxpayer aa as a matter of business practice sets sels up annually a It reserve re erve for toi had bold debts rea rea-I rea rea- rea additions to suck such re eno dui due dur- durIng log ins the tIre yeni yeal in the thai discretion ot of the may tV bo J ded deducted In I such suck case written oft off on the th InI books ot of e taxpayer must bo be 1 0 charged against tho the reserve and must not b bI be claimed claimed as aa a deduction from gross ib- ib It come como the debt was I outstanding on December 31 1920 1 20 1 ers who ho adopted either cither c ot of Ithe the tao t methods for tor the thoi tim Har ar 1921 must use the tho same seine method for tor the tho year 1922 unless unions perm lesion to change chang 11 Ir i obtained from tb Commissioner c of Internal Bbs He I IA A er using the reserve metho method hOUld should Include In his I a st state state- state ment moot showing th the volume ot of o his hi charge chargo sales toe or other business for tor the year the percentage pel per per- percentage of such stuck reserve to such sue amounts the total amount of ot notes holes note and nd accounts receivable at the begin begin- fling and end of the tho taxable ta uble year an anthe and the amount o of deMo debts ascertain d to be worthless or worthless and an charge 1 oft off against 1st the reser o ac- ac account account account count during the taxable 3 ear Bad debts can caD be deducted oni for Cor Corthe forthe the he icar ear In iii which they aro to be and charged ort oft the th pooks of ot tile tHo taxpayer 1 The he taxpayer should attach to his return a state state- statement ment mont Ing the pi of ot any dc de- de deduction claimed for tor a debt |