Payment of expenses by a cash basis taxpayer does not necessarily ensure a deduction in the current year.

Question

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This is because cash basis taxpayers can only deduct expenses in the year in which they are actually paid, rather than when they are incurred. If the payment is made in the current year, then it can be deducted in the current year, but if it is made in the following year, it cannot be deducted until that year. Therefore, the timing of the payment is crucial for determining whether or not it can be deducted in the current year.

Payment of Expenses by a Cash Basis Taxpayer Does Not