Currently deductible by a cash taxpayer


How much of the following expenses are currently deductible by a cash taxpayer?

a. Medical prescription costing $20 paid by credit card (medical expenses already exceed the 7.5% AGI floor).

b. Prepaid interest (not related to points) of $200 on a residential loan.

c. Taxpayer borrows $300 from the bank to make a charitable contribution. The $300 is paid to the charitable organization before the end of the tax year.

d. Taxpayer gives a note to his church indicating an intent to contribute $300.

e. A calendar-year individual mails a check for $200 to hid church on December 31. The check is postmarked December 31 and clears the bank on January 4.

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Accounting Basics: Currently deductible by a cash taxpayer
Reference No:- TGS046270

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