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Travis is a professional landscaper. He provides his clients with a one - year ( 1 2 - month ) warranty for retaining walls he
Travis is a professional landscaper. He provides his clients with a oneyear month warranty for retaining walls he installs. In June of this year, Travis installed a wall for an important client, Sheila. In early November, Sheila informed Travis that the retaining wall had failed. To repair the wall, Travis paid $ cash for additional stone that he delivered to Sheila's location on November of this year. Travis also offered to pay a mason $ to repair the wall. Due to some bad weather and the mason's work backlog, the mason agreed to begin the work by the end of January of the next year. Even though Travis expected the mason to finish the project by the end of February, Travis informed the mason the he would only pay the mason the $ when he completes the job. Assuming Travis is an accrualmethod taxpayer, how much can he deduct this year from these activities?
Travis is a professional landscaper. He provides his clients with a oneyear month warranty for retaining walls he installs. In June of this year, Travis installed a wall for an important client, Sheila. In early November, Sheila informed Travis that the retaining wall had failed. To repair the wall, Travis paid $ cash for additional stone that he delivered to Sheila's location on November of this year. Travis also offered to pay a mason $ to repair the wall. Due to some bad weather and the mason's work backlog, the mason agreed to begin the work by the end of January of the next year. Even though Travis expected the mason to finish the project by the end of February, Travis informed the mason the he would only pay the mason the $ when he completes the job. Assuming Travis is an accrualmethod taxpayer, how much can he deduct this year from these activities?
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