By: Martin M. Shenkman, CPA, MBA, JD
A method of determining when income must be reported and when expenses can be deducted. It is used by most individual taxpayers. Certain partnerships, corporations, and other taxpayers may not be able to use the cash method. Under the cash method, income is generally reported in the year you receive the money, and expenses are usually deducted in the year you pay the expense.
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