scorp expenses

[Unregistered]

Client, Cash basis s corp , charged business expenses by credit card in Dec 2005. Bill came in January 06 and client paid in 2006. . Can scorp deduct in 2005?

Thanks

[Safire]

It is my understanding that yes you can count credit card charges in the year they are charged. But other vendors, such as suppliers, you have to count in the year paid.

just be careful not to duplicate expense next year.

[Gretel]

I agree. Only exeption is a store credit card if run by store.

Since most store credit cards are run by other credit card companies they get the same treatment as a "normal" CC.

[OldJack]

If interested it is Rev. Proc 92-71 that spells out the deduction of credit card charges as discussed above.

[Unregistered]

Thank you!

[JON]

Card in name of???

The card needs to be in Corp name!!!!!!!!!!!!!1