Screen BadDebt - Bank Bad Debts (1120)

Enter the total bad debts sustained during the taxable year and the five preceding taxable years, adjusted for recoveries of bad debts during such period.
If this field is blank, the application uses the ratio of bad debts sustained to loans outstanding at the close of six or fewer taxable years.
Enter the balance of the reserve for bad debts and total outstanding loans at end of base year.
Under section 585, the base year is the last taxable year before the most recent adoption of the experience method, except that for taxable years beginning after 1987, the base year is the last taxable year beginning before 1988.
If this field is blank, the application uses the greater of the deduction based on average loss experience or minimum reserve level.
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