Page 24 - F6 - Special Deductions

Bad Debt s 11(i)

Deductible if debt:

 is due to the taxpayer; and

 was incl. in the taxpayer’s income for the current or any

previous year of assessment; and

 have become bad during the year of assessment

Will a loan written off as bad debt be deductible?

 Bad debt recovered must be included in gross income

 If bad debts are recouped by way of insurance contract –

s 23(c) prohibits the deduction of bad debt as a loss

(recoverable)