Bus Exp pay by cash or credit card?

Forum|Forum|5 years ago
June 17, 2020
1 reply
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If you charge an Expenses that is the same as paying Cash right? Like in December 2019 when you charge a supply but don't pay the credit card until January. You can include it on 2019 tax return, right?

Does it say that anywhere in the IRS? I looked at publications 535 & 538 but it just says cash. Where does it say by credit card is the same as cash?

Not A Product Question

Anonymous_

Employee

@VolvoGirl wrote:
Where does it say by credit card is the same as cash?

That is fairly well settled (see the link below). Rev. Rul. 78-39

https://bradfordtaxinstitute.com/Endnotes/Rev_Rul_78-39.pdf

Essentially, it is the same as taking out a loan from your bank and then using some, or all, of the principal to pay business expenses.

VolvoGirlAuthor

Employee

That's for medical expenses. I need one specifically for business expenses to answer someone in another forum.

Anonymous_

Employee

@VolvoGirl wrote:

That's for medical expenses. I need one specifically for business expenses to answer someone in another forum.

The Revenue Ruling deals specifically with medical expenses, but you missed the general rule:

....when a deductible payment is made with borrowed money, the deduction is not postponed until the years in which the borrowed money is repaid.....