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scftx57
March 12, 2021
Question

Covid19 lost wages

  • March 12, 2021
  • 1 reply
  • 0 views

My business (pilates studio) had to shut down during the Covid-19 quarantine period.  Can I claim the lost wages during that time as a deduction on Schedule C?

    1 reply

    S
    SundayInSalem
    March 12, 2021

    Unfortunately not. The IRS says "you generally can't take a bad debt deduction for unpaid salaries, wages, rents, fees, interests, dividends, and similar items." In might sound unfair but the IRS thinks you can't take a deduction for money you might have earned had their been no quarantine since there's no guarantee you would have earned that money.

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