This will depend on your accounting method. There are typically two methods.
- Cash - This is the most common, and it is basically:
- When you write the check, the bill is paid.
- This would be much like you maintain your checkbook. When you write the check, you deduct it from your balance.
- If you use this method, you would not claim the deduction.
- Accrual - This method is commonly used in larger businesses but is acceptable for small business.
- In this method, the bill is considered paid when it is invoiced.
- If you use this method, you should claim the deduction.
The accrual method is seldom used unless you have an accountant, or you have accounting experience. If you do have an accountant, you can ack the question. If not, it is reasonable to think you use the cash method and cannot take the deduction until 2023.
If you'd like additional details, please see: Accrual Accounting vs. Cash Basis Accounting: What's the Difference?
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