Apr 27, 2022 · For cash basis taxpayers, prepaid expenses may not be deductible, or may be deductible only in part, in the taxable year when they were made.

Feb 21, 2018 · The recently enacted Tax Cuts and Jobs Act (TCJA) includes a number of changes to the rules governing the choice of accounting methods by taxpayers.

Mar 31, 2020 · Businesses can use cash-basis accounting, accrual accounting, or a hybrid method, which is a blend of cash-basis and accrual accounting, to figure their taxable income.

Aug 1, 2023 · Cash basis accounting refers to a major accounting method that recognizes revenues and expenses at the time cash is received or paid out.

Nov 1, 2015 · Adam Aucoin, senior tax manager at BNN, provides guidance on accelerating your deduction for prepaid expenses including the 12-month rule and form 3115.

May 25, 2015 · Cash Basis Taxpayers Under Section 461, the timing rules for deductions incurred by a cash basis taxpayer are straightforward: pay the expense, and it's generally deductible.

See Change in Accounting Method, later, for information on how to get IRS approval. See Expense paid in advance under Cash Method, earlier, for examples illustrating the application …