Tax Purposes

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August 31, 2024 4 min read Definitions

Direct Write-Off Method: Bad Debt Expense Handling

Finance Accounting Bad Debts Accounting Methods Financial Reporting Tax Purposes Direct Write-Off

In the USA, the direct write-off method is a procedure for writing off bad debts as they occur. While this practice is unacceptable for financial reporting purposes, it is the only method allowed for tax purposes.

August 25, 2024 3 min read Definitions

Holding Period: Length of Time an Investment is Owned

Finance Investments Holding Period Capital Gain Capital Loss Tax Purposes Investment Duration

An in-depth definition of the holding period, its significance in tax purposes, and its influence on capital gain or loss classification.