Under the cash method of accounting, all of the following are true with the exception of
A) fixed assets are always expensed as the taxpayer pays for the assets.
B) gross income includes the value of property received.
C) to some extent, a taxpayer may control the year in which an expense is deductible by choosing when to make the payment.
D) income is reported in the tax year in which payments are actually or constructively received.
A) fixed assets are always expensed as the taxpayer pays for the assets.
While immediate expensing under Sec. 179 or bonus depreciation may be available for some assets and some taxpayers, all taxpayers, including those using the cash method, are generally required to capitalize fixed assets and to recover the cost through depreciation or amortization.
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