Generally, Cash Basis Taxpayers Must Deduct Payments of Prepaid Interest

question 57

True/False

Generally, cash basis taxpayers must deduct payments of prepaid interest using the accrual method.

---

Definitions:

Laws Examination

A test or series of tests evaluating an individual’s knowledge or competence in areas of law, often as part of legal education or certification.

Presumption

An assumption taken as true until evidence is presented to the contrary, often used in legal contexts to shift the burden of proof.

Eminent Domain

The power of the government to take private property for public use, with compensation to the owner.

Economically Beneficial Uses

Refers to activities or applications that result in economic benefits or gains, such as profit from land or resource utilization.