Tax question?

What is the difference between business and non-business bad debt and how are they accounted for?

A non-business or private debt is not deductable on your personal income taxation return. A busienss bad debt is a debt that is outstanding but no longer persuded by the creditor. This is diferent from a doubtful debt. A business bad debt is an expense in the current accounting period and is deducted from revenues to determine profit and, from this taxable profit. In short - one is deductable and the other is not. Private and business is always kept separate - it's a basic accounting principle assumption.

Business bad debts are noncollectable debts in the normal course of business (loans, credit sales, etc.)... None business bad debts are those debts outside the normal course of business (loans to friends, etc). Business bad debts are reported on Schedule C of your income tax return.... For more details consult your tax professional or the IRS.

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-cons...

if it helps kindly remember me in your voting!.. cheers!

kalamidad's answer of Schedule C and the IRS are relevant to taxes in the USA, but I see this question is for Australia and New Zealand, so these sources would not be correct. Business bad debt is usually tax deductible, non-business bad debt is a non-deductible expense, just like the sale of a non-business asset at a loss is not deductible.