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-   -   Tax Write Off??? (https://www.daycare.com/forum/showthread.php?t=58711)

Lisa4kids 01-08-2013 05:31 PM

Tax Write Off???
 
I had a family I ended up taking to small claims court during the summer. I won the amount that was owed, plus court costs, etc. The day that I was filing for a wage garnishment, the husband and wife's home was busted for meth. Needless to say, I will never see the money as they are in jail, with many charges against them and will probably be in prison. My question is, can I write off this money as a loss on my taxes? Any help would be appreciated!

daycare 01-08-2013 05:35 PM

Quote:

Originally Posted by Lisa4kids (Post 306353)
I had a family I ended up taking to small claims court during the summer. I won the amount that was owed, plus court costs, etc. The day that I was filing for a wage garnishment, the husband and wife's home was busted for meth. Needless to say, I will never see the money as they are in jail, with many charges against them and will probably be in prison. My question is, can I write off this money as a loss on my taxes? Any help would be appreciated!

wow that sounds crazy

I am no expert, hopefully tom will chime in..

from what I know, you are taking a loss by not claiming it.

TomCopeland 01-09-2013 12:19 PM

Loss?
 
Quote:

Originally Posted by Lisa4kids (Post 306353)
I had a family I ended up taking to small claims court during the summer. I won the amount that was owed, plus court costs, etc. The day that I was filing for a wage garnishment, the husband and wife's home was busted for meth. Needless to say, I will never see the money as they are in jail, with many charges against them and will probably be in prison. My question is, can I write off this money as a loss on my taxes? Any help would be appreciated!

Yikes! Kiss the money goodbye :)

You can't deduct this as a business loss. Instead, you will report less income on your 2012 tax return because you didn't collect them money. See my article on this:http://www.tomcopelandblog.com/2011/...care-bill.html

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab


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