Google Answers Logo
View Question
 
Q: 2005 vs 2006 income/expense ( No Answer,   1 Comment )
Question  
Subject: 2005 vs 2006 income/expense
Category: Business and Money > Accounting
Asked by: techguynj-ga
List Price: $4.00
Posted: 14 Mar 2006 07:14 PST
Expires: 13 Apr 2006 08:14 PDT
Question ID: 707140
If I made $80,000 in 2005 but spent it (at a loss) in 2006 is
there a way to report the INCOME and EXPENSES in 2005 OR report the
income made in 2005, in 2006?

I don't want to pay taxes on "income" of $80,000 for '05 if I spent
$90,000 in 2006 at loss of $10,000!!!

Note I have already looked into the accrual method but I don't think
it applies to me
Answer  
There is no answer at this time.

Comments  
Subject: Re: 2005 vs 2006 income/expense
From: respree-ga on 14 Mar 2006 19:50 PST
 
The short answer is no.

The purpose of the accrual method of accounting is to 'match' revenue
with expenses in the period in which they are incurred.

If you 'spent' the money in 2005, but 'paid' for it in 2006, then the
answer would have been 'yes' (you would 'accrue' those expenses into
2005 and be able to 'match' those expenses with your income).

Not many ways to 'fudge' it.  Your expenditures will be evidenced by a
transaction or invoice date, which will clearly state what period in
which the monies were 'spent'.

Hope this helps.  I know it's not the answer you were 'hoping' for, though.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy