In 2016, I incurred over $6000 in expenses as an independent contractor, but wasn't paid until 2017. Can I carry forward that business loss into 2017?

[glacier1978]

I also have income both years as an employee, so I know I can deduct the business losses for 2016 against my other income. However, I'd rather claim the business expenses for 2017 when I have business income. I had no business income in 2016.

[IsabellaG · Accepted solution]

You must claim your expenses in the year you paid them. As a cash basis taxpayer, you report your income in the year you receive it and your expenses when you pay them, and there is no option on when  to claim either.