CAF-2 · Chapter 7 · Question 8 of 15
To successfully claim a deduction for a bad debt under Section 29, which of the following conditions MUST be satisfied?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) D) All of the above.
Explanation
For a bad debt to be allowable, it must have been previously included in taxable income (or lent by a financial institution), written off in the accounts, and there must be reasonable grounds to believe it is irrecoverable.
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