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Topic History of: Unearned income
Max. showing the last posts - (Last post first)
Author Message
Miami LS Thx Samantha, but who wouldnt want to take receipt of the income? The client may decide to hold the advance proceeds in an escrow account to avoid actual receipt of income.
Samantha Simple answer is dont take the deposits until the following january; or use a client escrow account
Miami LS Client receives client deposits for services to be provided but that actuall services may not be performed for weeks. Sometimes these services are not performed untill January of the following year. Taxpayer is on the cash basis of reporting.

Question: how can we defer this income? What benefit will changing accounting methods to accrual basis make? Any other options for deferal?

Thanks all!
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