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?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 11DQ

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Charlie's Green Lawn Care is a cash basis taxpayer. Charlie 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,l which he would ordinarily pay in January 2020. 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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