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Get your taxes done using TurboTax
Yes, you are understanding the IRS Publication correctly. Expenses are taken when incurred if you are using the accrual method of accounting. Since you have been using the cash method of accounting, you can not claim this expense until 2022 when you made the payment. It is possible to switch accounting methods by filing Form 3115.
‎February 5, 2022
6:39 AM