By and large most of us are Cash Basis Taxpayers, which means you are entitled to deduct expenses when you pay them and are required to report income when you receive it. One simple mechanism for affecting the timing of the payment of deductions is the use of a charge card. When the charge is put onto your card, it is treated as paid for the purposes of your income tax return even though you might not actually pay the amount itself for up to a month or six weeks later. Thus, if you are trying to bunch deductions into this tax year, you could use your charge card to make that payment before the end of December.
By: Bruce M. Fogel, Esquire
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