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October 14, 2023
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When deduct business licensing fees paid in prior year

  • October 14, 2023
  • 1 reply
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If business licensing fees applicable to 2022 are paid in 2021 (In November/December for the upcoming year), which year's return should they be deducted?

    Best answer by Anonymous_

    If the business is a cash basis taxpayer, then the expense is deducted in the year in which it is paid.

    1 reply

    Employee
    October 14, 2023

    If the business is a cash basis taxpayer, then the expense is deducted in the year in which it is paid.

    rwom1217Author
    October 14, 2023

    If a license fee is paid once every three years, would I deduct the whole amount in the year it is paid or can I only deduct the fraction that covers the year it was paid, and sort of lose the rest?

    Employee
    October 15, 2023

    Deduct it in the year it was paid.