Any taxpayer who files income and deductions the same year they are paid and received. They may not deduct promissory notes or report receivables as payment. These taxpayers are governed by the rules of cash business. Opposite of accrual basis accounting.
Related information about cash basis taxpayer:
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A taxpayer who reports income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income, nor ...
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A cash basis taxpayer can look to the doctrine of constructive receipt and the doctrine of cash equivalence to help determine when income is received.
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Definition of cash basis taxpayer: Any taxpayer who files income and deductions the same year they are paid and received. They may not deduct promissory ...
- Cash Basis Taxpayer: Definition from Answers.com
Cash Basis Taxpayer A taxpayer who reports income and deductions in the year that they are actually paid or received.
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Dec 10, 2010 ... A cash basis taxpayer is a taxpayer who reports their income and deductions in the year that they are actually paid out or received by the ...
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Jun 15, 2012 ... During a recent Federal Tax Audit that was focused on the QTDP Grant the IRS agent clarified for us their official position on when to recognize ...
- Tax Topics - Topic 453 Bad Debt Deduction
Sep 11, 2012 ... If you are a cash basis taxpayer, you may not take a bad debt deduction for money you expected to receive but did not (for example, for money ...
- What Is a Cash Basis Taxpayer? - wiseGEEK
A cash basis taxpayer is a type of taxpayer who chooses to report income and allowed deductions during the tax year in which the income and deductions occur.