- (a) A business is generally allowed to take a bad debt expense.
- (b) Any bank, savings and loan, or any other institution chartered and supervised under federal or state laws shall be allowed a bad debt expense deduction computed in accordance with Internal Revenue Code Sections 582, 585, and 593, as in effect on January 1, 1997.
- (c) Banks with assets over five hundred million dollars ($500,000,000) must use the specific charge-off method for bad debts.
Codification Notes: Internal Revenue Code Sections 582, 585, and 593 are codified at 26 U.S.C. §§ 582, 585, and 593.