Cash Basis Taxpayer

A taxpayer who reports income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income, nor deduct promissory notes as payments.

The rules for cash basis taxpayers are essentially the same as for cash basis businesses. Cash basis accounting is the alternative to accrual basis accounting.


Investment dictionary. . 2012.

Look at other dictionaries:

  • basis — ba·sis / bā səs/ n pl ba·ses / ˌsēz/ 1: something (as a principle or reason) on which something else is established the court could not imagine any conceivable basis for the statute see also rational basis 2: a basic principle o …   Law dictionary

  • cash equivalent doctrine — Generally, a cash basis taxpayer does not report income until cash is constructively or actually received. Under the cash equivalent doctrine, cash basis taxpayers are required to report income even though no cash is actually received in a… …   Black's law dictionary

  • Basis — 1. The variation between the spot price of a deliverable commodity and the relative price of the futures contract for the same actual that has the shortest duration until maturity. 2. A security s basis is the purchase price after commissions or… …   Investment dictionary

  • Comparison of cash and accrual methods of accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • accrual basis — A method of accounting that reflects expenses incurred and income earned for any one tax year. In contrast to the cash basis of accounting, expenses do not have to be paid to be deductible nor does income have to be received to be taxable.… …   Black's law dictionary

  • Doctrine of cash equivalence — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Doctrine of Cash Equivalence — The Doctrine of Cash Equivalence states that the U.S. Federal income tax law treats certain non cash payment transactions like cash payment transactions for federal income tax purposes.1 The doctrine is used most often for deciding when cash… …   Wikipedia

  • cost basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cost basis n. The amount …   Law dictionary

  • Constructive receipt — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Zaninovich v. Commissioner — Zaninovich v. Commissioner, 616 F.2d 429, 9th Cir. 1980, is a United States court case about the deductibility of advance payments for tax purposes.Issue presentedWhether a rental payment by a cash basis taxpayer for a lease year that extended… …   Wikipedia

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