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Forum Moderators: LifeinAsia
I usually do this with hosting, paying upfront for a whole year and buying extra consultancy & training days to negotiate a good discount, but now Im told I should calculate when the service is provided for acounts purposes, is this right, seems unfair nearly everyone I know does this to pile up costs in yr 1.
I do everything business wise through my s-corporation. As far as I know, s-corps have to do everything on an accural basis.
Again, you need to run this by an accountant. They can be expensive but you want to find one that you can trust and who will answer questions like this throughout the year.
In other words, for your 2006 return you deduct the costs of those services you received in 2006 (e.g., hosting for Jan.-Dec. 2006). For your 2007 return you should deduct the costs of those services you receive in 2007 (e.g., hosting for Jan.-Dec. 2007). Regardless of when you actually paid for them.
[edited by: LifeinAsia at 7:46 pm (utc) on Jan. 11, 2007]