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California: Special Notice Addresses New Law that Repeals Bad Debt Deduction for Lenders and Retailer Affiliates

A California Department of Tax and Fee Administration special notice explains new law that disallows otherwise qualifying lenders and affiliates of retailers from claiming California’s sales and use tax bad debt deduction on accounts that have been found to be worthless and charged off, allowing only the retailers in qualifying situations to claim bad debt deductions as of January 1, 2025.

Source Deloitte

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