Mississippi Administrative Code
Title 35 - Department of Revenue
Part 3 - Income and Franchise
Subpart 01 - Definitions and Miscellaneous
Chapter 06 - Period When Deduction Taken
Section 35-3-01-06-101

A taxpayer who keeps books on a cash basis of accounting may not deduct items of expense accrued but must wait until such accrued items are paid, when they will constitute allowable deductions. This does not apply to deductions for depreciation. Bad debts do not constitute a loss as such under cash basis accounting.