what do we do when converting from accrual books to cash for tax purposes for...
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Accounting
what do we do when converting from accrual books to cash for tax purposes for prepaid expenses? do we move the prepaid expense to an expense acct for tax purposes? if prepaid taxes was 2000 and it was related to property tax. do we increase the property tax by 2000 for tax purposes since we paid for it this year with cash ? then do we reverse it next year for tax purposes?
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