Aubry, a cash basis and calendar year taxpayer, decides to reduce his taxable income for 2015 by

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Aubry, a cash basis and calendar year taxpayer, decides to reduce his taxable income for 2015 by buying $65,000 worth of supplies for his business on December 27, 2015. The supplies will be used up in 2016.
a. Can Aubry deduct the expenditure for 2015?
b. Would your answer in part (a) change if Aubry bought the supplies because the seller was going out of business and offered a large discount on the price? Explain.
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South Western Federal Taxation 2016 Comprehensive

ISBN: 9781305395114

39th Edition

Authors: James H. Boyd, William H. Jr. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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