JC Leahy, MA Accounting
For my friend Joe:
Capital vs Expense
How To Report Investment Expenses
When To Report Investment Expenses
If you use the cash method, you generally deduct your expenses, except for certain prepaid interest, in the year you pay them. If you use an accrual method, you generally deduct your expenses when you incur a liability for them, rather than when you pay them.
FOR MORE INFORMATION SEE MY EARLIER ARTICLE ON INVESTMENT EXPENSES.