A cash-basis taxpayer pays a bill with a credit card.The underlying expenditure is not deductible until the credit card bill is paid.

Question

Quizplus · Accepted Answer

For cash-basis taxpayers, expenses are generally deductible when they are paid, and using a credit card is considered a form of payment. Therefore, the expenditure is deductible when the credit card is charged, not when the bill is paid.

A Cash-Basis Taxpayer Pays a Bill with a Credit Card