My wife an I own a rental property that is subject to homeowners association dues of $100/month. Payments are due on the first of each month, and we will be out of the country in late December and early January, so I just sent in the 1/1/14 payment. Since I really don't want to be bothered doing this every month, I sent the dues for all of
2014 -- $1,200.Now I'm trying to figure out which year to deduct the dues in. My inclination would be to deduct all $1,200 in 2014, since that's the year to which they apply, but the cash basis rules sort of seem to indicate that I should deduct everything in the year in which it is actually paid. But that's obviously not the case for things like loan costs, etc.
So how far down the exception to the exception to the exception chain should I go?
A - Deduct the entire $1,200 in 2013, because that was when it was paid.
B - Deduct $100 in 2013 (because the 1/1/14 payment realistically had to be paid in 2013) and the remaining $1,100 in 2014.
C - Deduct the entire $1,200 in 2014.
Any pointers would be appreciated.
Thanks!