3 ms·
You are right, I've deleted my comment. IRS doesn't allow capitalizing unearned revenue if you pay taxes on cash-basis. But it's not fair to tax payer because
by lubos 12y ago
You are right, I've deleted my comment. IRS doesn't allow capitalizing unearned revenue if you pay taxes on cash-basis.
But it's not fair to tax payer because then on expense-side, IRS actually forces you to capitalize your prepaid expenses whether on cash-basis or accrual-basis.
So I don't agree with this but it's law and you are right.
- edanm 12y agoThanks for posting the correction. FWIW, I think it would be better to leave the original comment, and edit it to say "I was wrong - read below". This way you preserve the context, and also other people who make the same mistake as you (like me!) realize what you think and why it's not true.