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The consultant asks whether a €3,000 reserve given to a construction company that failed to return due to insolvency can be deducted as a capital loss. The DGT responds that no capital loss exists until the credit right is judicially uncollectable or special imputation rules apply.
A credit right is not considered lost for tax purposes until it is judicially uncollectable or specific imputation rules are met.
The tax team reviews your specific situation.
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