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to January 2002. The following transactions had invoice dates in
1998:
Payment Method of payment Invoice date Payment date
$50.00 Check 9/11/1998 9/10/1998
45.00 Check 9/11/1998 9/10/1998
80.27 Check 9/23/1998 9/23/1998
1,038.00 EFT1 9/30/1998 1/25/1999
86.20 Check 11/10/1998 11/10/1998
1,038.00 EFT 11/11/1998 1/25/1999
Petitioner made four payments to the University of Phoenix in
1998 totaling $261.47. Petitioner also made two payments to the
University of Phoenix in 1999 for expenses that were incurred in
1998. The latter two expenses cannot be treated as qualified
higher education expenses for 1998. Petitioner, as a cash method
taxpayer, is not entitled to accrue expenses. Under the cash
receipts and disbursements method of accounting “Expenditures are
to be deducted for the taxable year in which actually made”.
Sec. 1.446-1(c)(1)(i), Income Tax Regs.; see secs. 446, 461; sec.
1.461-1(a)(1), Income Tax Regs. Petitioner’s higher education
expenses for 1998 are limited to the qualified higher education
expenses that she actually paid during 1998. Accordingly, only
$261.47 of petitioner’s payments to the University of Phoenix
qualify as qualified higher education expenses for 1998.
Petitioner mentioned that her daughter was a student. But
petitioner provided no information to indicate the amount of any
expenses she may have incurred for the education of her daughter
1 Electronic funds transfer.
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Last modified: May 25, 2011