Deducting expenses that aren't paid

[LCP]

Is there any merit to the concept of a cash basis taxpayer converting unpaid expenses into a Note Payable and thereby being able to take a deduction for them?

I know I've seen that before, particularly in the area of accrued interest being added to a new note.

What about other types of expenses ..... rent, supplies, etc.?

[jainen]

Cash basis deducts when paid

Cash basis deducts when paid (with only a few exceptions such as prepaying a future bill). One way around this is to borrow the money from a third party to pay the expense. That is what happens with a credit card charge. When the store extends credit or delays collection, however, the deduction is also delayed.