Hello,
If a cash basis sole proprietor business owner sells his business in December 2015 but pays some expenses (being on cash basis) in January 2016, when are these expenses booked? Isn't the business's books closed in December 2015 so there is no booking in 2016? So those expenses go un-booked? The closing is reflected in 2015 tax return on Schedule C and Capital Gain on schedule D, correct? There is no schedule C tax filing in 2016, correct?
Thank you in advance for your help.