Question: Bart operates a sole proprietorship for which he uses the accrual method of accounting. Bart's sister Samantha, a cash method taxpayer, did some advertising work

Bart operates a sole proprietorship for which he uses the accrual method of accounting. Bart's sister Samantha, a cash method taxpayer, did some advertising work for Bart's business in November 2013. In December, Bart received a billing statement from Samantha for $5,000. Bart paid Samantha the $5,000 in January 2014. Samantha is a calendar year taxpayer. When may Bart deduct the $5,000?

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