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You are able to choose this when your company first starts filing a tax return. You can report on an accrual or cash basis.
by speakfreely 4y ago
You are able to choose this when your company first starts filing a tax return. You can report on an accrual or cash basis.
- fauxpause_ 4y agoBoth of which allow you to net out expenses and only be taxed on profit
- deleted 4y ago[deleted]
- gamblor956 4y agoI think that if the OP were an accrual basis taxpayer they would already know how to handle this situation, since accrual-basis accounting is opt-in for individuals and S-corporations. Note to other reply: estimated tax payments are made during the year. While you can net out expenses, if income is distributed unequally during the year this can result in penalties/interest if you underpay in one quarter based on the liability as calculated after the year ends (to complicate things, there are multiple ways to estimate tax payments during the year to account for these situations).