Ok. We have lost control on this question:
- I agree with @AmeliesUncle
- As stated, in general, as a cash method taxpayer you deduct the expense when paid.
- There are exceptions for prepaid items and there is the 12-month rule.
- Cash-method taxpayers are not required to capitalize prepaid expenses that create a benefit that expires on or before the earlier of (1) 12 months after the first day on which the taxpayer realizes the benefit of the expense or (2) the end of the tax year after the year payment is made.
- Since your subscription falls outside of that 12-month period exception, you do not qualify to expense the entire amount in 2021. You can only take a prorated amount related to the number of months in 2021.
- No change in accounting method needs to be done.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
