Stupid Taxes Question

March 27, 2013 12:42 PM

If I am submitting business expenses for my own business in my 2012 taxes, must I limit them to the 2012 calendar year? Or can they go up to April 15 of 2013?
posted by azoth to Law & Government (4 answers total)

Calendar year, stuff that happens in 2013 goes on 2013 taxes.
posted by sibboleth at 12:50 PM on March 27, 2013 [2 favorites]

Calendar year only.
posted by misanthropicsarah at 1:12 PM on March 27, 2013 [1 favorite]

Assuming your fiscal year is the calendar year (and you'd know if it wasn't because you set it up that way), you get the 2012 calendar year. April 15th, 2013 is just the filing/payment deadline (plus extensions) for tax year 2012. Anything that happens in 2013 you get to report on your return next year.

The major exception to this rule is for IRA contributions: you can contribute (deposit) money in your IRA today and designate it as being from last year (you have to do this when you make the transfer). Congress did this to help forgetful savers out and make it easier for them to maximize their contributions, but that's a special exception to the general "2012 is 2012" rule.
posted by zachlipton at 1:14 PM on March 27, 2013 [1 favorite]

In general, taxes are calculated on a cash basis. That is, your revenue collected during 2012 and your expenses paid during 2012 are the basis of your 2012 income.
posted by Midnight Skulker at 1:47 PM on March 27, 2013 [1 favorite]