"If you use the accrual method, report income when you earn it and deduct expenses when you incur them even if you do not pay them during the tax year. Accrual-basis taxpayers are put on cash basis for deducting expenses owed to a related cash-basis taxpayer. Other rules determine the timing of deductions based on economic performance."
???? How the heck should I know whether or not another business uses the cash method? O.O I'm afraid to put this thing in the mail.
I am not an accountant.
"If you use the accrual method, report income when you earn it and deduct expenses when you incur them even if you do not pay them during the tax year. Accrual-basis taxpayers are put on cash basis for deducting expenses owed to a related cash-basis taxpayer. Other rules determine the timing of deductions based on economic performance."
???? How the heck should I know whether or not another business uses the cash method? O.O I'm afraid to put this thing in the mail.