"jo" <phillysleuth[at]verizon.net> wrote
- quote -



Cash basis -always.







- quote -


Yup.





- quote -




If you actually receive a tax benefit (a deduction) for the tax software,
then you would (in 2008) recapture in income (on Line 21) the refunded
amount.






--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Does this deduction work on a cash basis or is it tied to the year for
which the return is being filed. For instance, if I delay buying my
2006 Tax software to 2007, is it a deduction for 2007 or should it
have been a deduction on my 2006 return? (I believe it goes on a
cash basis, but just trying to make sure). Related: Same first
scenario but then I buy my 2007 software also in 2007 to do early
estimating. That means I've bought two tax packages in the same year,
but they apply to different tax years. Do I deduct them both on the
2007 form?

And the make this even more convoluted, while I bought the 2007
software in 2007, today I found I was eliglble for a $5 discount. To
give me this credit, the store treated it in their system as a return
and a repurchase at the lower price. So now it will look like I
bought it in 2007 on one credit card statement andreceipt and in 2008
on another. Actually I'm not sure of the receipt situation... I'll
have to check to see if I ended up with all receipts or just the final
one in this year. If that's what I end up, do I just ignore the 2007
initial purchase record?

I know this is trivial compared to other questions, but I'm curious
what the right way to handle it is.
Thanks.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >