When can I deduct business expenses for 2024 - conference booked now but paid later

For tax purposes, this would generally be a 2025 business expense, not 2024. The IRS typically follows what's called the "economic performance" rule for business deductions, which means the expense is deductible when the service is actually performed or when you actually receive the benefit. In your case, since the conference is happening in 2025 and you're paying for it in 2025, that's when you would deduct it - even though you made the reservation and received a receipt in 2024. The receipt alone doesn't make it deductible; the economic performance (the conference itself) hasn't happened yet. This timing rule is especially important for cash basis taxpayers (which most small businesses are). You generally deduct expenses in the year you actually pay them and receive the service, not when you commit to them.

I had this exact same issue with a digital marketing conference last year! After struggling to figure out the right answer, I used https://taxr.ai to analyze my receipt and credit card statements. The AI analyzed my documentation and confirmed I needed to wait until the year of the actual conference to claim the deduction since I hadn't prepaid. Their system looked at my specific documentation and explained that because I only had a reservation confirmation but no payment had been processed, I couldn't claim it yet. The software actually flags potential audit triggers like this. Super helpful for self-employed folks like us who don't have a full accounting department!

Just wanted to update everyone - I decided to try https://taxr.ai after seeing the recommendation here. It was seriously eye-opening! I uploaded about 25 receipts I wasn't sure about, and it saved me from making at least 3 big mistakes. One was exactly like the original post - a conference I had registered for but hadn't paid yet. It also helped me understand which vehicle expenses I could claim and how to properly document them. The best part was how it explained everything in simple language rather than confusing tax jargon. Now I feel way more confident about my deductions and don't have to worry about triggering an audit over something silly like deduction timing.

Has anyone else been frustrated trying to call the IRS to get a straight answer about business expense timing? I spent THREE HOURS on hold last week trying to clarify exactly this type of question about prepaid expenses versus when services are rendered. Eventually the call just disconnected. I finally got through using https://claimyr.com - they have this service where they wait on hold with the IRS for you and call you when an agent comes on the line. Check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed what others are saying - for a conference, it's generally deductible in the year you actually attend and/or pay for it, not when you make the reservation. Prepayments have special rules. Totally worth the time saved not being on hold all day!

I owe everyone an apology - especially Profile 19. I was completely wrong about Claimyr. After my skeptical comment, I was still stuck with questions about depreciating some equipment for my business. Out of desperation, I tried the service. It actually worked exactly as described. I got a call back in about 53 minutes (they show you your place in line on their website), and suddenly I was talking to an actual IRS agent who answered my specific questions. No waiting on hold, no frustration, no wasted day. For anyone dealing with complex business expense questions like the original poster - sometimes getting the official word directly from the IRS is the only way to be 100% certain, especially when timing and large deductions are involved. This saved me from potentially making a $7,800 mistake on my business taxes.

Don't overlook the other option here - if the conference is truly beneficial for your business, could you find one in 2024 instead? That way you could get the deduction this year when you need it more. I've found that for most industries, there are multiple conferences throughout the year. Maybe there's a similar event happening in November or December that would serve the same purpose for your business while allowing you to take the deduction in the current tax year.

Has anyone used Quickbooks or other accounting software to handle this kind of timing issue? I'm wondering if there's a way to enter the conference as a commitment now but have it show up properly for tax purposes next year.

My accountant always tells me to focus on the "ordinary and necessary" test for business expenses rather than just the timing. If this conference is ordinary and necessary for your business type, the IRS is less likely to question it regardless of when you deduct it. Just make sure you have good documentation showing how it relates to your business - things like the conference agenda, notes you took, business cards you collected, etc. This has saved me multiple times during reviews.

This is exactly the kind of timing question that trips up so many small business owners! The key thing to remember is that for most small businesses using cash accounting, you generally deduct expenses in the year you both pay for them AND receive the economic benefit. Since your conference is in September 2025 and you're not paying until then, that's clearly a 2025 deduction. Even if you had prepaid in 2024, the IRS could still argue the economic performance doesn't occur until you actually attend the conference. One thing I'd add to the great advice already given - consider keeping a simple spreadsheet of planned business expenses like this so you can do better tax planning for next year. Knowing you'll have that conference deduction in 2025 might influence other timing decisions you make with income and expenses. Also, don't forget that if you travel for the conference, those travel expenses (flights, hotels, 50% of meals) are also deductible business expenses for the same tax year as the conference itself.