direct charge-off method

Question 1

direct charge-off method

Answer 1

to calculate the bad debts deduction regardless of whether the corporation is a cash-basis or accrual-basis corporation.

Question 2

reserve method

Answer 2

The “reserve method” for computing and deducting bad debts on securities may only be used by small banks and thrift institutions.

Question 3

direct charge-off method must be used by nearly all cash and accrual-basis taxpayers, not just corporations.

Answer 3

direct charge-off method must be used by nearly all cash and accrual-basis taxpayers, not just corporations.