Ron, a cash basis taxpayer, sells his business accounts receivable of

$$100,000$ to Felicia for $$70,000(70\%$ of the actual accounts

receivable$).$ What is the amount and classification of Ron's bad debt

deduction?

Ron has no$.$ bad $$ debt deduction because he is a cash basis

taxpayer. Ron has $

of

$.$

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In determining the amount and timing of the deduction for bad deb

is effected by the taxpayer's basis in the bad debt.