Bees
has it. A credit card is a third party payee/or. If you went to the a got a loan for $10,000 on December 30, and paid everything out on the 30th for operating expenses you take the deductions then and have a loan on the books. As a third party payee/or credit cards are advancing you a loan automatically and you get the deduction. The one problem you may have is make sure the credit card is owned properly. If you have the corporation book the transaction off of the credit card of an employee and/or a stockholder they do not like that. I tried to argue it was then due to the employee and/ or stockholder, but the IRS position was the third party status did no include them. I still have a problem with that I think you can owe those monies to someone other then on the credit card, but this was years ago and we had used the credit card as the back up and lost.
I think you can even find support for reporting both the FICA witheld and employer matching as a libility for cash basis taxpayers/
has it. A credit card is a third party payee/or. If you went to the a got a loan for $10,000 on December 30, and paid everything out on the 30th for operating expenses you take the deductions then and have a loan on the books. As a third party payee/or credit cards are advancing you a loan automatically and you get the deduction. The one problem you may have is make sure the credit card is owned properly. If you have the corporation book the transaction off of the credit card of an employee and/or a stockholder they do not like that. I tried to argue it was then due to the employee and/ or stockholder, but the IRS position was the third party status did no include them. I still have a problem with that I think you can owe those monies to someone other then on the credit card, but this was years ago and we had used the credit card as the back up and lost.
I think you can even find support for reporting both the FICA witheld and employer matching as a libility for cash basis taxpayers/
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