Warren is a cash method computer consultant. On December 31 he finds that he is short of funds and decided to pay all of his creditors with promissory notes. Accordingly he issues $20,000 in negotiable promissory to all of his creditors. When may Warren obtain a deduction?

Answer rating: 100% (QA)

Warren as a cash method taxpayer typically reports income in the year it is received and deducts exp... View the full answer