- California allows a bad debt deduction for sales and use taxes related to worthless accounts
- Retailers and lenders can claim the deduction under certain conditions
- Senate Bill 167 suspends the deduction for affiliates of retailers in 2025
- Lenders can only claim the deduction if the account was written off before 2025
- On January 1, 2028, only retailers (excluding affiliates) will be entitled to the deduction
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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