Cash Basis Taxpayer

[Donna]

When recording expenses for a cash basis taxpayer, do you record check by the date written or the date they clear the bank? Thank you, I have always used the date written but someone is challenging me and I need a consensus.

Donna Scott
Scotland Yard Tax Service

[Jesse]

I believe date mailed or delivered IF funds are available in account. If I write a check out on 12/31/07 but do not mail or hand over until 01/01/08 it's not paid until 2008. If I mail or hand over on 12/31/07 it's paid in 2007, assuming I have funds available to back the check.