2007-02-27 09:41:15 · 4 answers · asked by max z 1 in Business & Finance ➔ Taxes ➔ United States
YES (to 2007, NO to 2006)
Expenses are CASH basis, meaning you take them in the year that they were PAID.
Some people 'double up' there deductions in a year. For example, paying your 2006 taxes in 2007 and your 2007 taxes by December 31 of that year. Other things like state taxes can be prepaid giving you the biggest federal deduction possible.
In the opposite years, you're left with little in deductions and usually claim the standard. It is a legal tax strategy used quite frequently.
Of course, there is AMT to consider.
But almost all things for an individual are on the cash basis.
2007-02-27 15:32:34 · answer #1 · answered by Molly 6 · 0⤊ 0⤋
You would claim them as an itemized deduction on Schedule A in the year that they were paid.
2007-02-27 18:01:34 · answer #2 · answered by tma 6 · 0⤊ 0⤋
Yes, you claim them when you pay them, but can't claim any late fees.
2007-02-27 21:58:45 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
yes---you almost always pay these in the next year.
2007-02-27 17:46:03 · answer #4 · answered by Anonymous · 0⤊ 1⤋