The 12-month rule allows taxpayers to deduct the entire amount of certain prepaid business expenses.

Name: The 12-month rule allows taxpayers to deduct the entire amount of certain prepaid business expenses.
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The 12-month rule does allow taxpayers to deduct the entire amount of certain prepaid business expenses, such as rent or insurance, that cover the next year, as long as the payment is made in the current tax year and the benefit received can't be used in the next tax year.

The 12-Month Rule Allows Taxpayers to Deduct the Entire Amount