Show I rI r Your Income Tax Xo No 8 28 Jail Dad debts may be deducted horn from gross Income la In computing net In- In Income income in income come only for tor the year in which they are arc ascertained to bo be worth worth- worthless worth loss less and charged d oft off the books of the taxpayer The taxpayer should attach to his hats return a n statement showing tho the pro propriety of any de- de deduction deduction de deduction claims claimed for tor bad debts deb Where h ro tho the surrounding circum circumstances stances show that a debt Is worth worth- worthless worthless Icis less and and that I gal in all nil probability woul would 1 not avail proof oC or these r facts acts Is sufficient of oC their worth worth- worth I ese a Unpaid loans matte mafle to relatives relative or friends frienda with little or no of their return are not de- de de deductible but are arc regarded as gUt gifts II It If a debt Is tt forgiven it can not be claimed A A valid debt proved to be worth worth- worthless worthless less I Is not always a proper deduction deduc deduc- deduction deduction tion For example unpaid amounts wages wagE'S salaries or rentals rental or similar Items of taxable income are not allowed as deduc deductions deduc- deduc deductions unless Included in the cred credo creditor's creditor's return tor for the year ear or in a previous previous your year The Tho fact tact that expected ex- ex ex expected Income was wa not received dies i not decrease the amount ot of taxa taxable hie Income Partial deductions a are ara ro allowed with respect to specific d debts only Amounts subsequently recovered on account ot of o bad lie debts 1 s or on ac- ac account account ac account count of n a part pall of such bad debts pr previously charged off ott and nd allowed for income tax purposes must be Included In gross Income for tor the year ear In la which received |