In April 2016,Bertie,a calendar year cash basis taxpayer,had to pay the state of Michigan additional income tax for 2015.Even though it relates to 2015,for Federal income tax purposes the payment qualifies as a tax deduction for tax year 2016.

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Under the cash basis method of accounting, Bertie can only deduct the payment in the year it was incurred or paid. Since the payment was made in 2016, it qualifies as a tax deduction for 2016 federal income tax purposes.

In April 2016,Bertie,a Calendar Year Cash Basis Taxpayer,had to Pay