Question for the CPAs

[Eric72]

I anticipate receiving an auction house check near the end of this calendar year.

If the check is dated 2025 and I deposit it in 2025, I'd include the money with my 2025 income.

What if the check is dated 2025 and I don't deposit it until 2026? Do I include it with my 2025 income or 2026 income?

No part of my tax situation involves the accrual method of accounting.

[pawpawdiv9]

im not a tax guy --- Its if/when the AH sends the tax form if its for '25 or '26, but most likely for '25 since the auction was held in '25
I hope this makes sense. Now if they dont send a tax form...then i see your point of the income, it be when you make the depost in your account.

[NiceDocter]

It’s not just when the check is dated but when you receive it…… if it’s dated December 28th but you don’t get it until January, then it’s the next year as far as income. Don’t try and say your check dated September 20th didn’t come for 3 months…. there’s a bit of wiggle room late in the year but not much. Be honest , pay your taxes, and sleep well at night.

[Eric72]

To be clear: yes, being honest and paying my taxes is important.

If the AH issues a 1099, that would easily answer the question.

If they don't, I want to make sure I pay the taxes in the correct year. A 2026 deposit into my bank account might get treated as 2026 income...even if I paid the taxes with my 2025 return.

Again, the accrual method of accounting doesn't factor into my tax situation at all.