Timing of Debit Card Payments

[Tax Sleuth]

A business taxpayer, who uses the cash basis of accounting, paid for some legitimate company items just before the end of 2017, and he intended to be able to deduct those payments for his 2017 taxes. However, he was using a debit card, and the transactions did not post to his business bank account until January 2, 2018. Can he deduct those payments for his 2017 taxes? Are there any official IRS rules that I can cite for this type of situation?

[kathyc2]

A business taxpayer, who uses the cash basis of accounting, paid for some legitimate company items just before the end of 2017, and he intended to be able to deduct those payments for his 2017 taxes. However, he was using a debit card, and the transactions did not post to his business bank account until January 2, 2018. Can he deduct those payments for his 2017 taxes? Are there any official IRS rules that I can cite for this type of situation?

As long as the receipt is dated in December, not a problem. It's the same concept as if he wrote a check for the purchase but the check doesn't clear bank until January.