The checks are dated in December of this year. How do I adjust invoices in Quickbooks so that a Profit Loss statement for this year does not reflect invoices whose checks I am not depositing?
2006-12-12 16:27:57 · 7 answers · asked by dik_09d 1 in Business & Finance ➔ Taxes ➔ United States
No, the income is taxable when you receive the checks, not when you deposit it.
2006-12-12 16:31:31 · answer #1 · answered by jseah114 6 · 3⤊ 0⤋
ought to you email me the call of the monetary employer it incredibly is paying you 4% interest on a mark downs account? My monetary employer is paying much less and that i could desire to alter on your monetary employer. there is not any longer something it incredibly is thoroughly liquid and has the tax advantages which you truly choose. some concepts that are close, yet have strings linked, are: a. you could placed money right into a inventory that would not pay any dividends. Your good points are deferred till you sell. in spite of the incontrovertible fact that, the inventory value could pass down, meaning which you're able to no longer be waiting to get lower back your unique investment once you needed it. b. you need to place the money into an annuity, which may be tax-deferred. in spite of the incontrovertible fact that, in case you mandatory the money beforehand age fifty 9 a million/2, then there could be a 10% penalty, as properly to the common tax. c. you need to place a small quantity of money per annum (some thousand money) into an IRA, and use the deduction for the IRA contribution to offset various the taxable interest.
2016-12-18 12:29:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
As a cash basis entity. You're taxed when you receive the cash and deduct expenses when you pay it.
Although EVERY business I know of does what you're asking, hold some December checks and deposit them in January so they don't have to realize it in the current year. Call it whatever you want to, cooking the books, tax planning. But they all do it.
2006-12-13 05:49:13 · answer #3 · answered by Anonymous · 0⤊ 1⤋
I think they call that 'Cooking the Books' in all those old gangster movies, but why not go for it? Of course, if you ever got a letter from the IRS telling you you made a mistake, you'd know why. They aren't very nice.
2006-12-12 16:39:19 · answer #4 · answered by Anonymous · 1⤊ 0⤋
you are either cash basis or accrual for taxes. If accrual you can't. If cash basis you can. Get out of Quickbooks for Peachtree, btw.
2006-12-13 03:16:18 · answer #5 · answered by vegas_iwish 5 · 0⤊ 1⤋
the doctrine of constructive receipt. All the prior posters are correct in saying no.
2006-12-13 01:06:54 · answer #6 · answered by jinenglish68 5 · 2⤊ 0⤋
no, you're taxed on when that check COULD have been cashed by you not when it ACTUALLY was - you're AGI should be the same whether you cash it now, in January, or whenever
2006-12-12 16:42:50 · answer #7 · answered by forex 2 · 1⤊ 0⤋