Check issued & received 12/31/2014 but posted 1/5/2015

[AZ-Tax]

Business: Check issued & received 12/31/2014 but posted 1/5/2015. Received meaning landlord physically received check.

[Lion]

Are you asking if it's 2015 income? Yes it is. Are you asking if the books should reflect the received date? Yes they should. Are you asking if you should have an unpleasant conversation with the landlord? If your client, yes.

[ATSMAN]

I agree with Lion. Similar situation with folks who pre-pay their property tax due in January by end of December to claim the property tax deduction. My town will often times hold the check until due date to cash it!

[taxea]

Date is not when you deposit the check but, rather, when you received it.

[JohnH]

Constructive receipt.
When the money is available.
Doesn't matter when the check is cashed/deposited.

[Will]

Are you asking if it's 2015 income? Yes it is.

Disagree. I would say 2014 income.

[Lion]

Oops, I misread, thinking it was sent the end of 2015 to landlord. We tax preparers never know what year it is. I'm still working on some 2014 and prior years given to me very late, and the 2015s are arriving, but I'm paying my own bills now in 2016. The OP check was sent and received in 2014. 2014 income to the landlord; 2014 expense to the renter. It doesn't matter that landlord didn't post it until 2015. I think I have the dates straight per the OP.

[Burke]

I agree with Lion. Similar situation with folks who pre-pay their property tax due in January by end of December to claim the property tax deduction. My town will often times hold the check until due date to cash it!

We recently paid for our PO Box on 12/31/15 for which we had received the bill a couple of weeks earlier. Went to the PO to buy stamps and pay box rent, and they refused to cash check or issue receipt for box rent until 1/1/16 since that was the actual due date.

[JohnH]

We recently paid for our PO Box on 12/31/15 for which we had received the bill a couple of weeks earlier. Went to the PO to buy stamps and pay box rent, and they refused to cash check or issue receipt for box rent until 1/1/16 since that was the actual due date.

Isn't that just like a bloated bureaucracy?
Turning down perfectly good money because it's being offered too early.
That sort of practice would be a firing offense in a well-managed business.