Page 25 - F6 - Special Deductions

Doubtful debts s 11(j)

(Provision for Bad Debts)

Only if previously incl. in income

DEDUCTION MAY BE CALCULATED IN TWO

WAYS:

1. 25% of doubtful debts list OR

2. If not practical to compile such a list: May use

special formula (do not need to know)

Any amount claimed in one year must be added back

to income in any future years