Skip to main content
Level 1
September 8, 2023

Automatic change in accounting method from cash to accrual

  • September 8, 2023
  • 2 replies
  • 7 views

Taxpayer is a sub s-Corp cash basis taxpayer in the equipment rental business. This year the taxpayer has gross revenue in excess of $25,000,000 and has elected to begin selling used equipment to customers and began keeping an inventory of equipment available for sale. Does the taxpayer qualify for an automatic change in accounting methods from cash to accrual?

    This topic has been closed for replies.

    2 replies

    sjrcpa
    Level 15
    September 8, 2023

    Research it and charge your client accordingly.

    The more I know the more I don’t know.
    abctax55
    Level 15
    September 8, 2023

    Has school started?

    HumanKind... Be Both
    sjrcpa
    Level 15
    September 8, 2023

    I guess so. I didn't think of that.

    The more I know the more I don’t know.