Published on 01 Oct 10
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The meaning of "incurred" is important in ascertaining the timing of s 8-1 deductions. Unfortunately, some of the cases defining incurred are difficult to reconcile. Case law also establishes that a loss or outgoing is not deductible under s 8-1 until a year to which it is "properly referable", even if it was incurred earlier. This article submits that the cases defining incurred could be reconciled by reinterpreting anomalous cases as implicit applications of the proper referability doctrine.