Legal Question in Tax Law in California
Accrued/unpaid compensation - tax loss?
Can a loss (ordinary? capital?) be claimed on an individual's personal taxes for accrued compensation that remains unpaid beyond the person's tenure with the company?
Asked on 10/07/08, 10:07 am
1 Answer from Attorneys
Donald Field
Donald L. Field, Jr., Attorney at Law
Re: Accrued/unpaid compensation - tax loss?
no, you have not yet paid any taxes for the accrued compensation (because it has not been received) and as a cash basis taxpayer a deduction is not available for earned income accrued but not paid.
Answered on 10/11/08, 12:04 pm
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