Almost all Taxpayers account and file for taxes as "Cash Basis" taxpayers, meaning that you account and report all income received in the year received and all expenses in the year actually paid, whether or not the expense was for that year or paid in advance or paid in arrears.
This is in contrast to many businesses that use "Accrual Accounting."
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3
- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.
