C-corp write off accounts payable, timing We are a C-corp and entered a $86,000 bill from a subcontractor with our 2016 tax return. It turns out that we don't have to pay the bill, we settled the liability and it's reduced to zero.
At what point ( from a tax law perspective) and how (from an accounting perspective) do we have to take the invoice off the books and how can it impact tax liability in 2017 or the future? |