insurance bill - deferred payment


P

ps56k

Received an insurance bill for a rental building the end of last year 2010 -
However we paid the bill in this year 2011.

So - do we NOT claim the Insurance expense on Sched E for 2010 taxes ?
since we actually paid the bill in 2011...

What about "adjustments" from 2007, 2008, 2009, 2010
that were finally paid to the insurance company this year ?

Do we claim ALL these Insurance expenses next year
on our Sched E for 2011 ?

tnx - not my doing :)
 
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R

removeps-groups

Received an insurance bill for a rental building the end of last year 2010 -
However we paid the bill in this year 2011.

So - do we NOT claim the Insurance expense on Sched E for 2010 taxes ?
since we actually paid the bill in 2011...

What about "adjustments" from 2007, 2008, 2009, 2010
that were finally paid to the insurance company this year ?

Do we claim ALL these Insurance expenses next year
on our Sched E for 2011 ?
Cash basis taxpayers (almost all individuals are cash basis) take most
deductions, including this one, in the year they pay it. So yes, in
2011 you claim all these deductions.
 

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