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Can a bank reduce total revenue by the amount of principal repayment taken as a bad debt?

April 26, 2017bad Bank debt Principal reduce repayment revenue total

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Can a bank reduce total revenue by the amount of principal repayment taken as a bad debt?

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Bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included in total revenue for the current reporting period or a past reporting period may be excluded from total revenue. The principal repayment of a loan is not included in total revenue and therefore cannot be excluded from total revenue as a bad debt.