Proft Sharing Contribution - cash basis S-Corp

[duanecpa]

I have a client that is a cash basis S-Corp that is considering making a profit sharing contribution for 2011.

If the contribution is made after 12/31/2011 for calendar year 2011, does the contribution become an expense of the corporation for 2011? or 2012?

Please provide citations.

Thank you.

[natiro]

Profit Sharing contribution

If a contribution is made in 2012 (by the due date of the return, including extensions) for the 2011 tax year, it is deductible in 2011. This is true for both accrual and cash basis taxpapers. The cite is IRC 404(a)(6).

[dsi]

what is a profit sharing contribution?

[Lion]

Retirement Plan

A contribution to a particular type of retirement plan