- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
@JaLaMooNo, I'm no expert, but based on my understanding of the earlier reply: - If you operate on a cash basis, then you could have deducted the entire 1-year subscription paid in 2016 on your _2016_, not 2017, tax return. The rule appears to be, for expenses paid in advance for:
- anything lasting 12 months or less and ending before the end of the _next_ tax year (2017 in your case) can be deducted in full in the year in which you pay them (2016).
- anything lasting more than 12 months or extending past the end of the _next_ tax year would have to be deducted in pro-rated pieces: one piece for each tax year that your payment is paying for. So I guess if you paid for a 2-year subscription in November 2016, I think you would deduct 1/2 (12 months) in 2016. For the other half, I'm less sure; maybe deduct the other half in 2017.