Can I report the rental expense if the contractor doesn't deposit my check by 12/31/2024?

[manbeing]

I hired a contractor to renovate my rental property in October this year. I gave him a check, and he provided me with a receipt. However, as of today, he hasn't cashed or deposited the check. If he doesn't deposit the check by 12/31/2024, can I still report it as a rental expense on Schedule E of my 2024 tax return?

There is no way to select accounting method on the Schedule E.

[DoninGA]

Payment was made in 2024 so you report the expense on the 2024 Schedule E for the rental property.

[manbeing]

even though the money is actually still in my bank account?

I think we are supposed to use cash basis? (not accrual basis)?

[M-MTax]

You lose control of the funds when you write the check and hand it to the contractor or put in the mail. 

[manbeing]

@M-MTaxJust wanted to confirm you mean i can still go ahead to report it as the expense for 2024 tax return?

[VolvoGirl]

Yes it goes by the date you wrote the check.  It's out of your hands.  

[Mike9241]

Unless you dated the check for 2025, thus preventing cashing until 2025, it would be a 2025 expense. if it's dated in 2024, it's not your tax problem whether the IC cashes the check or not in 2024.