Episode Details

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The core difference between cash basis (income when received, expenses when paid) and accrual basis (income when earned, expenses when incurred). - How the constructive receipt doctrine is a common exam trap for cash-basis taxpayers. - The three parts of the 'all-events test' required for deducting expenses under the accrual method, with a focus on economic performance. - Which entities, such as large C corporations and tax shelters, are required to use the accrual method. - The specifics of the small business taxpayer exception, including the gross receipts test that allows certain larger businesses to use the cash method.