Roger McEowen: Pre-Paid Expenses

December 14, 2016

NASHVILLE, Tenn (RFD-TV) RFD-TV’s Market Day Report hosts a weekly interview with Roger McEowen, Professor of Agricultural Law and Taxation at the Washburn University School of Law, and an affiliate with the Kansas Farm Bureau.

The topic of this week’s interview: Cash method taxpayers can generally deduct their expenses for the tax year in which they’re paid. However, for business and tax purposes, farmers often find it advantageous to prepay and deduct the cost of supplies come tax time. Why do farmers often find it beneficial to pre-pay? What circumstances might cause the IRS to challenge pre-paid expenses? Professor McEowen gives his answers to these and other questions in the video above.