Question

Deductions

Forum|Forum|1 year ago
February 15, 2025
1 reply
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I have a large farm deduction (20K) that is for work done in 2024. I did not receive an invoice for the work until Jan 2025. Can I still claim it as a deduction on my 2024 tax return?

Not A Product Question

PatriciaV

Employee

It depends on 1) the accounting basis for your farming activity and 2) when you recorded/paid the invoice.

A cash-basis taxpayer (most common) reports income as it is received and expenses as they are paid. Any amount you paid before the end of the year would be included in your farming activity. But if you didn't pay the invoice until after the first of the year, that expense would be reported next year.

However, if you elected to report on the accrual basis and recorded the invoice as a payable before year-end, you would include that expense in the year the work was done.

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