Jake and Mary Snow are residents of the state of New York. They are cash basis taxpayers and file a joint return for the calendar year. Jake is a licensed master plumber. Two years ago, Jake entered into a contract with New York City to perform plumbing services. During the current year, Jake was declared to be in breach of the contract, and he ceased performing plumbing services. Jake received a Form W-2 that reported $50,000 for wages paid. He also maintains that the city has not paid him $35,000 for work he performed. Jake is considering claiming a $35,000 business bad debt on his tax return. Evaluate Jake's plan.