- 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"
- South Dakota Clarifies Use Tax Requirements for Out-of-State Materials
- Digital Advertising Services Taxes: States Catch Up and Look Ahead
- Understanding Utility Sales Tax Exemptions: Are Your Business Utilities Tax-Exempt?
- Are Shipping Charges Subject to Sales Tax in South Carolina?
- Are Shipping Charges Subject to Sales Tax in Missouri?
