BACKGROUND:
I have an S corp, I'm the only shareholder and employee, and I use cash accounting:
In 2019 I paid for some business expenses on my personal credit card (e.g. misc. supplies and equipment) and the company will reimburse me in 2020.
QUESTION:
When I do the business taxes (1120S), can I deduct these expenses on the 2019 return or do I need to wait and deduct them on the 2020 return?
My guess is that I can't deduct on 2019 return since I'm using cash accounting and the company didn't actually incur the cost until 2020 when the reimbursement happened; however, I'm asking the question because on a previous years return, where I had H&R block do my return, the same situation arose and they deducted it in the year the items were purchased rather than the year the reimbursement was made. Then they carried the reimbursement forward to the next year's liability on the balance sheet. Again, since I'm using cash accounting, I'm wondering if this is ok to do.
Thanks for the help.
Mark
