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Does a cash overdraft kill tax deductions?

October 31, 2019 by John Sanchez

Does a cash overdraft kill tax deductions?

[siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget] Here is a hypothetical (although common) scenario: I have a cash-basis calendar-year client who on December 31, 2018, wrote and mailed $5,000 in checks for 2018 expenses. With this activity, his books showed a $9,000 negative cash book balance. His December 31, 2018, bank statement shows a positive balance of $15,000. Outstanding checks totaling $24,000 make up the difference. The client has $50,000 available in a line … [Read more...] about Does a cash overdraft kill tax deductions?

Filed Under: Business Tagged With: cash overdraft, tax compliance, tax deductions

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