- California’s budget legislation, SB 167, limits and suspends the sales and use tax bad debt deduction.
- The legislation changes the retailer definition for the bad debt deduction, including entities affiliated with the retailer, until January 1, 2025.
- Starting from January 1, 2025, retailers cannot claim a bad debt deduction, although the disallowance expires on January 1, 2028. Affiliated entities are not eligible for the reinstated bad debt deduction. Existing and future claims for accounts charged-off up to December 31, 2024, are still eligible for the deduction.
Source PwC
Latest Posts in "United States"
- USA and Taiwan Unite: A Landmark Agreement to Transform Semiconductor Manufacturing
- Texas Sales Tax Audit Risks: Key Strategies for Restaurant Franchisees to Minimize Exposure
- Zero-Emission Transit Buses to Be Fully Taxed in California Starting January 1, 2026
- Crowdfunding and Sales Tax: Essential Rules Creators Must Know to Stay Compliant
- Which Organizations Qualify for Sales Tax Exemption? State-by-State Rules and Certificate Guide
