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Individual taxpayers receive income and deduct expenses on the "cash basis." This means you report income when you receive it and record expenses when you pay them.
Since this transaction (paying the workers) actually took place the morning of January 1, 2018, it is a 2018 transaction. When the money was drawn out of the bank to make the payments is not relevant to the determination.
Individual taxpayers receive income and deduct expenses on the "cash basis." This means you report income when you receive it and record expenses when you pay them.
Since this transaction (paying the workers) actually took place the morning of January 1, 2018, it is a 2018 transaction. When the money was drawn out of the bank to make the payments is not relevant to the determination.
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