Tax Question - GoFuckYourself.com

mrkris · 04-03-2008, 10:57 AM

So a previous company I was contracting for decided to file bankruptcy after owing me $10k+, and same with other developers.

I know this is an accountant question, but I'm wondering if anyone in here has dealt with this and knows if it can be written off as a loss or something.

Input?

CurrentlySober · 04-03-2008, 10:59 AM

'Tax'???

What is this 'Tax' that you speak of???

baddog · 04-03-2008, 11:00 AM

Yes, it can be written off as a loss, however, I believe there is a limit as to how much you can declare per year. It used to be 8k.

So you could write off 8k this year and 2k next.

You should probably confirm that the amount has not changed.

Eriic · 04-03-2008, 11:03 AM

Quote:

Originally Posted by baddog

Yes, it can be written off as a loss, however, I believe there is a limit as to how much you can declare per year. It used to be 8k.

So you could write off 8k this year and 2k next.

You should probably confirm that the amount has not changed.

Wrong again dumb Ass

You need to go to their bankruptcy hearing and file a claim against them and they will be ordered to pay you a percentage of the debt.

mrkris · 04-03-2008, 11:04 AM

Quote:

Originally Posted by baddog

Yes, it can be written off as a loss, however, I believe there is a limit as to how much you can declare per year. It used to be 8k.

So you could write off 8k this year and 2k next.

You should probably confirm that the amount has not changed.

Fantastic, I will research this. Thanks

mrkris · 04-03-2008, 11:09 AM

Quote:

Originally Posted by Eriic

Wrong again dumb Ass

You need to go to their bankruptcy hearing and file a claim against them and they will be ordered to pay you a percentage of the debt.

That would require me to find out WHEN it is, take time off work and fly to another state. He has no income to pay. He liquidated the software to another company and used the money to pay for taxes BEFORE he said he was filing for bankruptcy.

baddog · 04-03-2008, 11:13 AM

Quote:

Originally Posted by Eriic

Wrong again dumb Ass

You need to go to their bankruptcy hearing and file a claim against them and they will be ordered to pay you a percentage of the debt.

So, he gets $2.00 out of $10k. Are you suggesting he can't write off the $9,998 as a loss?

Eriic · 04-03-2008, 11:14 AM

Quote:

Originally Posted by mrkris

That would require me to find out WHEN it is, take time off work and fly to another state. He has no income to pay. He liquidated the software to another company and used the money to pay for taxes BEFORE he said he was filing for bankruptcy.

Not true, if this company actually indeed filed for bankruptcy you should then receive legal papers in the mail. All clients from a company shall receive the papers so they can go to the hearing and tell the court how much they will settle for.

Also you can send in the papers without going to court, you should eventually receive something from the lawyer.

mrkris · 04-03-2008, 11:17 AM

Quote:

Originally Posted by Eriic

Not true, if this company actually indeed filed for bankruptcy you should then receive legal papers in the mail. All clients from a company shall receive the papers so they can go to the hearing and tell the court how much they will settle for.

Also you can send in the papers without going to court, you should eventually receive something from the lawyer.

That's assuming he is doing things correctly, right? I mean .. I was just a contractor writing web apps for him, for his clients.

woj · 04-03-2008, 11:46 AM

You are shit out of luck, you didn't actually lose any $$, you just lost time... and you can't deduct lost time...

Eriic · 04-03-2008, 12:01 PM

Quote:

Originally Posted by baddog

So, he gets $2.00 out of $10k. Are you suggesting he can't write off the $9,998 as a loss?

I'm not suggesting that at all, but he needs to settle first. Then he maybe able to write off the difference.

mrkris · 04-03-2008, 12:02 PM

Quote:

Originally Posted by woj

You are shit out of luck, you didn't actually lose any $$, you just lost time... and you can't deduct lost time...

I wasn't quite sure. Logically, one would think that as a contractor, time is money, thus if I didn't get $10k for my work, that is $10k I could have received from another client.

Eriic · 04-03-2008, 12:06 PM

Quote:

Originally Posted by mrkris

That's assuming he is doing things correctly, right? I mean .. I was just a contractor writing web apps for him, for his clients.

That's correct! If he did not file bankruptcy and just shut down then your screwed

It depends, I have been through this before and I have been on both sides.

If he legally filed bankruptcy and has you listed as a client you should get notified.

DigitalPimp · 04-03-2008, 12:47 PM

According to the IRS, "You can claim a bad debt deduction only if the amount owed to you was previously included in gross income. This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest."

http://www.irs.gov/publications/p535/ch10.html

Got Porn? · 04-03-2008, 12:54 PM

You should call a few tax accountants / CPA's and tell them your situation. Use the one that gives you the best advice.

Eriic · 04-03-2008, 12:57 PM

Quote:

Originally Posted by Got Porn?

You should call a few tax accountants / CPA's and tell them your situation. Use the one that gives you the best advice.

Everyone has their own stories and thoughts. Contacting a Taxman,,well, Gheeze, Hum, err, ah,.........Do you think

IllTestYourGirls · 04-03-2008, 01:07 PM

Some use that same argument as why they do not need to pay taxes at all. You are trading your time for money so there is no profit. Many people have actually won their court cases with that argument. I wouldnt try it though lol

Quote:

Originally Posted by woj

You are shit out of luck, you didn't actually lose any $$, you just lost time... and you can't deduct lost time...

04-03-2008, 10:57 AM	#1
mrkris Confirmed User Join Date: May 2005 Posts: 2,737	Tax Question So a previous company I was contracting for decided to file bankruptcy after owing me $10k+, and same with other developers. I know this is an accountant question, but I'm wondering if anyone in here has dealt with this and knows if it can be written off as a loss or something. Input? __________________ PHP-MySQL-Rails \| ICQ: 342500546

04-03-2008, 10:59 AM	#2
CurrentlySober Too lazy to wipe my ass Industry Role: Join Date: Aug 2002 Location: A Public Bathroom Posts: 38,688	'Tax'??? What is this 'Tax' that you speak of??? __________________ My AI Handywork... My Dream Gal... XXX 👁️ 👍️ 💩

04-03-2008, 11:46 AM	#10
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	You are shit out of luck, you didn't actually lose any $$, you just lost time... and you can't deduct lost time... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

04-03-2008, 12:47 PM	#14
DigitalPimp Confirmed User Industry Role: Join Date: Jun 2003 Location: Los Angeles, CA Posts: 512	According to the IRS, "You can claim a bad debt deduction only if the amount owed to you was previously included in gross income. This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest." http://www.irs.gov/publications/p535/ch10.html Last edited by DigitalPimp; 04-03-2008 at 12:49 PM..

04-03-2008, 12:54 PM	#15
Got Porn? Confirmed User Join Date: Nov 2005 Location: Charlotte Posts: 1,264	You should call a few tax accountants / CPA's and tell them your situation. Use the one that gives you the best advice. __________________ Demo Porn2Go's Plug-In Feeds 1st Month Free! No BW Fees! ICQ 303355427 [email protected] RIP TD

04-03-2008, 11:00 AM	#3
baddog So Fucking Banned Industry Role: Join Date: Apr 2001 Location: the beach, SoCal Posts: 107,089	Yes, it can be written off as a loss, however, I believe there is a limit as to how much you can declare per year. It used to be 8k. So you could write off 8k this year and 2k next. You should probably confirm that the amount has not changed.