I want to prepay next year's rent in December to artificially lower my current year profit, is this cash flow strategy accepted by the IRS?

Question

Kohari Gonzalez Oneyear & Brown · Accepted Answer

Prepaying next year’s rent to affect current year profit is a common cash flow and tax timing question, and the treatment often depends on the accounting method, the lease terms, and whether the payment is viewed as a genuine business expense or a timing shift. In many cases, the IRS looks at whethe For an answer applied to your exact numbers, bring this question to a licensed KGOB CPA in a focused session and leave with a clear next step.