Using Turbotax H&B (CY2023). I have a home office. I need to report my home insurance premiums as part of the Home Office deduction calculation. Unfortunately, I have several insurance policies that I pay in installments each month. Some of these installment payments are in one tax year, while other payments (all on the same policy) are in a different tax year. How should I report this? Should I "split" the payment chain and report only the payments made in the current tax year?
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Report expenses paid in the tax year.
Replying to make sure that I understand you correctly -
You're saying that I should strictly follow the IRS procedures for cash method reporting --
Using the example of an insurance policy that is renewed every September, has a down payment, and has 9 consecutive monthly payments. The down payment is paid in September, then monthly payments starting in October for 9 months (October to June). Are you saying that I should include only the payments made in the specific tax year? If so, I would include all of the payments from January to June, plus the renewal down payment in September, and then the payments made October - December. Did I understand you correctly?
Yes. That is correct.
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