Is there a way to limit "find and replace" to one account only?

I have over one hundred fifty business credit card transactions that I want to tag as Taxes-2019. When I use find and replace, it selects from all accounts, including checking, and other credit cards. Selecting (checking) just the transactions from the Business credit card will be tedious. Find and replace from just the business credit card would be much quicker and easier. I have checked on line and google - no joy.

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Answers

  • WayneClark
    WayneClark Member
    Thank you both for your reply!
    Best of Everything,
    Wayne
  • WayneClark
    WayneClark Member
    Thank you for taking the time to reply.

    However, as a cash basis taxpayer, I can not deduct credit card expenses until the credit card statement is paid. This results in some charges made at the end of the year that are downloaded with a 2019 date, but not deductible in 2019 because the credit card statement was paid in 2020. The problem is made worse, by the credit card company statements that do not begin on the first day of the month or end on the last day of the month. Keep in mind that the 2019 charges that were not paid in 2019, need a tag of taxes-2020 so they will be included in the proper year.

    Given the very low IRS audit rate, I am sure many taxpayers simply say the hell with it and use the process you described.

    Best of Everything,
    Wayne
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    No that's not right.  You can deduct them when you charged them.  Charging is the same as paying for it.  So you might to wait until you get your credit card statement in Jan to enter the charges for December so you CAN include them.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    And that's why you need to enter the charges into the credit card account on the date it was charged - FOR TAXES.  Otherwise in your way of thinking you would just use the statement date or date you paid the bill for all the charges.  


  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    @volvogirl is correct.  For a cash basis tax payer, credit card purchases are deducted on the date of the purchase not when the payment is issued.
  • WayneClark
    WayneClark Member
    Hello VolvoGirl, Thank you for your reply. However, unless you can point to a IRS Code provision, rule, regulation, or case supporting credit card charges are deductible cash accounting expenses when charged, I disagree. What you said is true in accrual based tax accounting. But, in cash basis accounting:
    "Under the cash method, generally, you deduct expenses in the tax year in which you actually pay them." See IRS Publication 538. There is one notable exception - expenses that cover more than 12 months. You can only deduct the expense amount that actually was paid and used in the first year. The balance of the expenses must be applied to the following years where the expenses were actually used (capitalized).
    BTW. Great looking Golden.
    Best of Everything,
    Wayne
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    "Under the cash method, generally, you deduct expenses in the tax year in which you actually pay them." 

    You paid "them" as soon as you charged the expense to your credit card.

    Look at it from the point of view of the business that provided you with the service.
    You walk into a store and you "buy" XXX and put it on your credit card. That business immediately gets paid.  Your credit card company paid them for you.

    Now you owe your credit card company $XX.YY, but that has nothing to do with when the purchase/payment for the product/service was conducted.
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  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    A lot of people wait until Dec last minute to pay things and make donations to count on their tax return.  Doesn't matter how they pay it.  
  • WayneClark
    WayneClark Member
    Hello Sherlock, Thank you for the reply. There may be some IRS code provision, etc. that I missed, but for now, I stand by my reply. Think of it this way, "why is a credit card purchase essentially different from any other credit purchase?" In both cases you take possession of goods and incur a liability to pay for the goods. In both cases you are later sent a bill demanding payment and must pay after receiving the bill or suffer the consequences. Both may list a series of items purchased a different times. The only difference is that credit card companies call their bills "statements." In both cases the purchaser's personal liability is extinguished only when bill or statement is paid in full. You can argue that the cc company is a third party who has paid the merchant, however, this is no different from a factor who buys an account receivable. The factor is a third party who pays the merchant but that does not change the nature of the underlying cash accounting transaction.
    Best Regards.
    Wayne
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    edited June 2020
    @WayneClark there is difference between the business sending you a bill and you using your credit card.  In the case of a bill being sent to you, clearly you have not paid them until you get that bill and under the terms on that bill pay them.  When you pay them is when the transactions is recorded for cash basis accounting.

    In the case of the credit card you were presented with a bill at the time of sale, you used your credit card at that point of time, and the money was transferred to the businesses account.  That is when the transaction is recorded.

    Another example.
    You decided to buy a house.  You take out a loan, and instruct the loan company to pay the buyer for the house.  You have now purchased the house even though you owe money to the loan company.  You didn't "buy" the house 30 years later when you paid off the loan.

    Note that in the case of the credit card or the loan company they are acting under your instructions to pay people.  That is the same as you paying them, just  as if you told an accountant to pay XXX bill.
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  • WayneClark
    WayneClark Member
    Hello All. Thank you all for taking the time out of your busy day to straighten out my error. After reading IRS Rev. Ruling 78-39 and the Tax Court Case "Granan v. Commissioner" 55 T.C. 753 (1971), I agree that credit card payments are deductible in the year charged. You all are the best!

    This will make my taxes much easier!

    I also learned how to properly use "Find and Replace" in Quicken!

    PS: Don't tell the IRS that I made a mistake on last years return. 😉

    Best of Everything,
    Wayne
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    I won't tell if you don't tell on all the mistakes I have made over the year.   :)
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