Charlie's Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2019 customer billings for lawn care into the next year. In addition, he is thinking about paying some of the bills in late December 2019, which he would ordinarily pay in January 2020. This way, Charlie claims, he will have "less income and more expenses, thereby, paying less tax!" Is Charlie's way of thinking acceptable?
Charlie's Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2019 customer billings for lawn care into the next year. In addition, he is thinking about paying some of the bills in late December 2019, which he would ordinarily pay in January 2020. This way, Charlie claims, he will have "less income and more expenses, thereby, paying less tax!" Is Charlie's way of thinking acceptable?
Chapter17: Tax Practice And Ethics
Section: Chapter Questions
Problem 26P
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Charlie's Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2019 customer billings for lawn care into the next year. In addition, he is thinking about paying some of the bills in late December 2019, which he would ordinarily pay in January 2020. This way, Charlie claims, he will have "less income and more expenses, thereby, paying less tax!"
Is Charlie's way of thinking acceptable?
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