Archive for Timing of Income/Expense

Dec
10

Timing of Income/Expense

Posted by: Jan Lindsley | Comments (0)

An expense item is counted when you pay.  Sign the check.  Sign the credit card slip.  Postmark the mail.  When the funds leave your control, payment has been made.

With income, you cannot simply wiat to cash a check — IRS says you have “constructively received” the money — it’s yours right now.  (You are free to delay billings, though!)

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a.k.a. www.JLTaxPrep.com & www.JLTaxPro.com
Located in: San Diego, CA 92123

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