Accounting Dictionary

Suspense Account

A suspense account consists of losses that are temporarily or permanently non deductible because the investor has no money at risk.

Investor Andy invests $5000 in an oil well. In 2017, the venture loses $9,000. Since investor Andy only invested $5,000, he has only $5,000 at risk and can only deduct $,5000. The other $4,000 goes into a suspense account. If the well never makes money, the losses are lost forever. If the well makes money in 2018, the investor can take the deduction in 2018 or in any other year in which the well makes money. When we had the extra losses we were in suspense, would we get to deduct them or not? We didn’t know, would the well make money or not?

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top
Get Your eBook Today!

Fill out this form to have our eBook sent directly to your email address.

Access Until You Pass

The Elite-Unlimited course provides UNLIMITED continuing access to your course materials until you pass the CPA Exam! How does it work? Upon activating your course, you will have an initial 36 months of access. You can then renew your subscription as many times as you need to pass your exams—for FREE. Simply click the “renew” option in your student account and you can continue studying your high-quality course materials without losing any of your data and course progress.

Renewal Instructions

  •   Please purchase a renewal using the "Renew" option from the My Account page
  •   To qualify for renewal pricing, course must be renewed before it expires
  •   All renewals are effective from the current expiration date and cannot be deferred
  •   Test information cannot be reset (deleted) with renewal unless eligibility criteria is met (see Help page)