Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.1 6/24/83; site duke.UUCP
Path: utzoo!linus!security!genrad!decvax!duke!bcw
From: bcw@duke.UUCP (Bruce C. Wright)
Newsgroups: net.taxes
Subject: Re: deferred income?
Message-ID: <3809@duke.UUCP>
Date: Wed, 7-Dec-83 16:28:33 EST
Article-I.D.: duke.3809
Posted: Wed Dec  7 16:28:33 1983
Date-Received: Fri, 9-Dec-83 04:36:44 EST
References: <4068@rochester.UUCP>
Organization: Duke University
Lines: 14

Deciding which year you received income depends on which method
you use for accounting purposes.  If you use the accrual system,
the income is considered to have been received when the service
(or good or ...) was rendered.  If you use the cash system (as
most small operations do), the income is considered to have been
received when you receive the cash or check or whatever method
of payment is agreed upon.  The time the check was cashed or any
payment-in-kind sold, etc.  is irrelevent.  If the amount is
large, and you do not anticipate similar income in succeeding
years, you may be better off with income averaging - this is
something which you will have to work out (or have your accountant
work out).

			Bruce C. Wright @ Duke University