Utility question

[pintsize]

I paid an electric bill on January 2nd, it was from electric service used during 2017, do I include it as a utility payment on 2017 taxes or 2018 when the payment was made?

thank you. sorry if this has been asked already, daycare kids are waking up, no time to search :-)

[Mike]

Bookkeeping can be done based on cash in/out or actual costs/earnings. Unless you're doing the cash way, 2017 taxes would include utility costs to the end of the year. If your next bill is for Dec/Jan, you would have to calculate the percentage of it for Dec.

[TomCopeland]

utilities

I paid an electric bill on January 2nd, it was from electric service used during 2017, do I include it as a utility payment on 2017 taxes or 2018 when the payment was made?

thank you. sorry if this has been asked already, daycare kids are waking up, no time to search :-)

You can deduct expenses when you pay them or when you incur the debt (credit card). Since you didn't pay this bill until 2018, record it as a 2018 expense. Your January 2017 bill that paid for utilities in 2016 is a 2017 expense.

[pintsize]

Thank you!