Is a bonus payment deductible for a C-Corp if paid in the subsequent year?
Yes. As long as the bonus payment happens within 2 1/2 months of the company’s taxable year-end, the company can take a deduction on the current tax return.
For example, for a tax year-end date of December 31st, the corporation would be able to deduct bonuses for the Year 1 tax return as long as they are paid by March 15th, Year 2:
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