The taxable year for which a taxpayer reports income or takes deductions often depends on the taxpayer's accounting method. In this lesson, we'll learn about the cash receipts and disbursements method, also called the cash method.

Reporting Income Generally

Generally, a cash-method taxpayer reports income for the year she receives it. See 26 C.F.R. § 1.446-1(c)(1). When a cash-method taxpayer receives income sometimes depends on the income's nature or the payment method. A cash-method...