buksoBad debts customer never paid uncollectible
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
You can deduct an amount a customer owes you only if you already included it in your income and you decided in the year that it cannot be collected. If you later collect it, it is income again.
Official source: canada.ca