I don't see where Section 163 states the accrued interest can only be deducted if you are an accrued based taxpayer?
I don't see where Section 163 states the accrued interest can only be deducted if you are an accrued based taxpayer?
That's the basic definition of a cash as opposed to an accrual taxpayer. Section 461(a) says,
"The amount of any deduction or credit allowed by this subtitle shall be taken for the taxable year which is the proper taxable year under the method of accounting used in computing taxable income."
Stu
...And is in contrast to verbage used in other sections such as 170A which requires payment to be deductible - i.e. cannot be merely accrued (pledged).
Section 170A? I couldn't find it. But if you're talking about statutes dealing with specific types of income or deduction, those would be exceptions, and would not diminish the general rule.
Stu
Sorry for the brain Freeze: Section 170, and it's regulations 1.170A.
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