BIR Ruling

February 4, 1972 Mr. Remigio D. Sagles Special Investigation Division S i r : This refers to your letter dated January 31, 1972 requesting information as to whether the publication expense incurred by a duly licensed physician in publishing a book to be sold to students and other persons, and who is reporting his income and expenses on a cash method of accounting, is deductible on the year it was paid. In reply, I have the honor to inform you that for cash basis taxpayers, such as the doctor in question, the deduction is to be taken in the taxable year in which paid. This is corollary of the rule stated in regard to income, in that income earned is to be reported when received. Accordingly, the expense incurred by the doctor in connection with the publication of his book is deductible on the year actually paid by him. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue