If you are a cash basis business or individual you need to make sure that you mail checks for deductible items before year-end to ensure a 2012 write-off. You will be able to claim the deduction this year even if the checks do not clear until January.
If you are using a credit card the rules are a bit different. You need to make sure you know the tax rules if you are charging deductible items:
For charges made with a retail store credit card, you are allowed to claim the deduction for the item only in the tax year in which you pay the bill.
For transactions made with a bank credit card, you take the write-off in the tax year that you charged the goods, even if you pay the bill next year.
With the bank cards you also need to make sure that your records are accurate. You do not want to make a mistake and count the expenses in two separate years.
If you have any questions please contact our office for more information.