The requirement in (a) above prohibits a deduction under subparagraph 20(1)(p)(i) where a debt was sold, discounted or assigned absolutely by the taxpayer during the course of the year, even though the taxpayer may remain liable to indemnify the purchaser or assignee if the debt should prove to be uncollectible. (c) the debt was included or is deemed to have been included in the taxpayer's income for that taxation year or a previous taxation year. ![]() (b) the debt became bad during the taxation year, and ![]() (a) the debt was owing to the taxpayer at the end of the taxation year, Subparagraph 20(1)(p)(i) authorizes a deduction for a bad debt if the following requirements are met: It also deals with the determination of reserves for doubtful debts.ฤก. As well, the bulletin discusses the inclusion in income of the subsequent recovery of any such amounts. This bulletin discusses the deduction of bad debts, and of amounts in respect of uncollectible loans or lending assets by an insurer or a taxpayer whose ordinary business includes the lending of money. For taxation years and fiscal periods beginning before Jor ending before 1988, please refer to the law. This bulletin applies for taxation years and fiscal periods beginning after Jand ending after 1987. This bulletin cancels and replaces IT-442 dated February 11, 1980. SUBJECT: INCOME TAX ACT Bad Debts and Reserves for Doubtful Debts ![]() What the "Archived Content" notice means for interpretation bulletins
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