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Cash basis private foundation with payment of accrued interest

  • 1.  Cash basis private foundation with payment of accrued interest

    Platinum Most Valuable Member
    Posted 06-13-2022 03:24 PM
    I have a cash basis private foundation.  there never  had  any investments.  During the final month of the year they received a large contribution and purchases bonds.  They paid accrued interest on the bonds and now have negative interest at the end of the year. Is it an expense, (with no income to offset)?  Is it deferred?  Thanking you in advance.

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    Michael Rubinstein
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
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