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Business & farm
Maybe it's QuickBooks that needs to be adjusted. Is the 30,000 deposit sitting in an "Income" account?
I completely understand what you are saying. You have not yet earned this as income, you did not produce a product yet, and you cannot report the expenses you will incur against this income.
But that's not the way the IRS sees it. You sold a promise for 30,000, so you need to pay tax on that 30,000.
Hopefully this will even out for you next year when you report the expenses, but not this income.
Going forward, if this causes a financial burden, try to time the deposits so that they don't overlap the calendar year.
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March 8, 2020
2:48 PM