You can generally deduct an amount for a bad debt if you meet the following conditions:

• you had determined that an account receivable is a bad debt in the year
• you had already included the account receivable in income

For more information, go to Interpretation Bulletin IT-442, Bad Debts and Reserves for Doubtful Debts.

Forms and publications

• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Form T2125, Statement of Business or Professional Activities