FTP going through this month?

[Trikkur]

Thanks for the help Mike. I won't be going to see my accountant until later this month and I figured someone looked into this already. I'm sorry that you are out enough that you had to be the one

I didn't attempt to use tax terms like 'bad debt', but thinking about it now - it makes sense that this isn't a "debt". I figured something like this situation must happen to construction workers/home repair people enough. They do a job and then get shafted on the bill for whatever reason. It sucks that you can only deduct the amount you spent on materials when that is extremely minuscule compared to the payments that should have been made.

[superiorword]

I hope they come back asap and start their aff. program...they owe me a lot of moniez and I'm still ranking so well for full tilt keywords

[Mike]

Thanks for the help Mike. I won't be going to see my accountant until later this month and I figured someone looked into this already. I'm sorry that you are out enough that you had to be the one

I didn't attempt to use tax terms like 'bad debt', but thinking about it now - it makes sense that this isn't a "debt". I figured something like this situation must happen to construction workers/home repair people enough. They do a job and then get shafted on the bill for whatever reason. It sucks that you can only deduct the amount you spent on materials when that is extremely minuscule compared to the payments that should have been made.

That's actually a slightly different situation. In that scenario, the builder would have extended some sort of credit to the homeowner to get the job done. On his quarterly tax fillings, he would realize that money when paying taxes because the project had started. At the end of the year, if the homeowner defaulted on the credit, then it would be a bad debt.

The example I can think of that would be relevant to our situation would be if FT did a media buy on some sort of the NET30 deal with an affiliate site, which I don't think ever happens. If the affiliate site claimed that media buy as income, then they may be able to right it off as bad debt.

[resipsa]

Mike is basically correct, but that assumes the affiliate is a cash basis tax payer. If for some reason the affiliate is an accrual basis tax payer than they would possibly have already taken the full tilt payment as income and then would in fact be eligible for an offsetting bad debt deduction when it is determined that payment is not going to occur. Yeah, I know that's getting way too anal here....