Cash Basis Taxpayer

Dictionary Says

Definition of 'Cash Basis Taxpayer'

A taxpayer who reports income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income, nor deduct promissory notes as payments.
Investopedia Says

Investopedia explains 'Cash Basis Taxpayer'

The rules for cash basis taxpayers are essentially the same as for cash basis businesses. Cash basis accounting is the alternative to accrual basis accounting.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Cash Basis

    A major ...
  2. Cash Accounting

    An accounting ...
  3. Accrual Accounting

    An accounting ...
  4. Liquidator

    In the most ...
  5. Economic Profit (Or Loss)

    The difference ...
  6. Profit

    A financial ...
  7. Operating Income

    The amount of ...
  8. Price-Earnings Ratio - P/E Ratio

    A valuation ...
  9. Earnings Before Interest, Tax, ...

    An accounting ...
  10. Gross Profit Margin

    A financial ...

Articles Of Interest

  1. Operating Cash Flow: Better Than Net Income?

    Differences between accrual accounting and cash flows show why net income is easier to manipulate.
  2. Accounting Rules Could Roil The Markets

    FAS 142 is an accounting rule that changes the way companies treat goodwill. Be aware of the impact it has on reported earnings to avoid making bad investment decisions.
  3. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  4. The Essentials Of Corporate Cash Flow

    Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself.
  5. What are the generally accepted accounting principles for inventory reserves?

  6. Financial History: The Evolution Of Accounting

    Follow accounting from its roots in ancient times to the profession we now depend on.
  7. The Impact Of Combining The U.S. GAAP And IFRS

    The convergence of accounting standards is changing the attitudes of CPAs and CFOs toward harmonization of international accounting.
  8. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  9. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  10. CPA, CFA Or CFP® - Pick Your Abbreviation Carefully

    A couple of letters can mean a big difference. Find out which designation you need and how to get it.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center