Show INCOME TAX NOTES A debt discovered to be b worth worth- worthless worthless worthless less and charged charted oft off the th books book of the taxpayer for tor the tho th year 1025 may be deducted from the tb gross gros Income In computing net Income for that year The Th return must mut show evidence of ot the th manner In which the th worthlessness of ot the debt was wai discovered and that or- or ordinary ordinary or ordinary and legal le l means for tor Its collection have o been or would be b unavaIling Bad debts debt may Day may be b deducted deduct In whole or In part When deducted the taxpayer most be b able abl to show with a reasonable degree deere of o certainty certainty certainty the th amount Partial deductions deduction are ar allowed with respect to specific debts debt only A valid debt proved to be b worth worth- worthless worthless less lees may not always be h a a proper prop deduction for example unpaid amounts representing wages was rent rent- rentals r nt-als nt ala als or similar Items are ar not al- al allowed allowed lowd al-lowd lowed as 81 deductions deduction unless Included Included ed as gross cross Income In the th credi- credi creditor creditors tor tor tors return for the th year yar In which the th deduction is la sought soucht or In a previous pre year The Th fact that ex ex- ex expected Income was not received does doe not reduce r duc the th amount of taxable Income of the th creditor Unpaid loans made mad to needy rel- rel relative rel relatives or friends with little or no expectation that they would be b re- re repaid repaid paid are ar not deductible but are regarded as gifts |