Hi! I have a client that owns a daycare and she wants to write off the tuition that she waived because of Covid. I can't find anything on the subject so I am asking here. Thank you!
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If you mean by she waved income due to her from her clients... If she is accrual based, you can adjust income if some income claimed in a prior year.
Is she is cash based, she simply just doesn't list that amount in her income received (because it wasn't). There is no other deduction for lost wages/not collecting income/etc.
Chris -
I hear this often from clients who consider it a "loss." I guess it is, but not a tax deductible one. It also crops up with self-employed persons who perform the labor, but then don't get paid.Comment
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