Nevada Administrative Code
Chapter 372 - Sales and Use Taxes
BAD DEBT DEDUCTION
Section 372.535 - Maintenance and availability of records relating to bad debt
Universal Citation: NV Admin Code 372.535
Current through September 16, 2024
1. Pursuant to NRS 372.735 and 374.740, a retailer who claims a deduction for a bad debt deduction shall maintain a record of the following information relating to the bad debt:
(a) The
name of the debtor.
(b) The date on
which the bad debt was incurred.
(c) The taxable sales price of the sale of
tangible personal property giving rise to the bad debt.
(d) The amount of sales tax remitted to the
Department on the sale of tangible personal property giving rise to the bad
debt.
(e) The portion of the bad
debt representing:
(1) Interest;
(2) Any finance charge;
(3) Any service charge; and
(4) Any other amount charged as part of the
sale which was not subject to sales tax.
(f) If the retailer is required to file a
federal income tax return:
(1) The date on
which the retailer wrote off the bad debt in the business records of the
retailer that are maintained in the ordinary course of the retailer's business
and became eligible to claim a deduction for the bad debt pursuant to section
166 of the Internal Revenue Code,
26 U.S.C. §
166;
(2) The amount of the deduction claimed for
the bad debt pursuant to section 166 of the Internal Revenue Code;
and
(3) Any other evidence that the
retailer claimed a deduction pursuant to section 166 of the Internal Revenue
Code for the uncollectable portion of the bad debt on which sales tax was
originally paid.
(g) If
the retailer is not required to file a federal income tax return:
(1) The date on which the debt was written
off the records and books of account of the retailer in accordance with
generally accepted accounting principles;
(2) The amount of the debt written off the
records and books of account of the retailer on which sales tax was originally
paid; and
(3) Any other evidence
that the uncollectable portion of the debt was written off the records and
books of account of the retailer in accordance with generally accepted
accounting principles.
(h) The amount of the bad debt deduction
claimed by the retailer for each bad debt.
2. Upon request by the Department, a retailer shall provide to the Department a record maintained by the retailer pursuant to subsection 1.
Added to NAC by Tax Comm'n by R191-18, eff. 12/19/2018
NRS 360.090, 372.368, 372.725, 372.735, 374.373, 374.725, 374.740
Disclaimer: These regulations may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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