Senate and House in opposition to limiting the use of the cash-basis
method of accounting for certain entities.
The Fifth Circuit Court of Appeals upheld a Tax Court decision that a change in accounting method occurred when the IRS disallowed an accrual-basis taxpayer's deduction for inventory purchased on account from a related-party cash-basis
There are two general methods of accounting for the internal books and records of a company as well as for tax purposes: the accrual-basis and cash-basis
However, if property with (1) no basis in the shareholder's hands (such as cash-basis
receivables) or (2) a FMV in excess of its basis is transferred, the shareholder will recognize gain to the extent of the lesser of any boot received or the FMV in excess of basis.
statements are less costly because the detailed records needed to comply with GAAP reporting are unnecessary.
For the separate-return short year of December 23 through December 31, 1982, SoCal - which was a cash-basis
taxpayer - deducted interest it paid or credited during the short period but that had accrued during the last six months of 1982.
Fitch believes that Safeco uses a reasonable amount of financial leverage for its current rating level and that the company has good earnings and cash-basis
As with other expenses paid to a cash-basis
member, an accrual-basis LLC cannot deduct rent expense owed to a cash-basis
member until the expenses are paid and included in the member's income; see Sec.
Tax-basis and cash-basis
, including modified-cash-basis
, financial statements are the most widely used OCBOA statements.
Thus, an accrual-basis payor would be placed on the cash-basis
method of accounting with respect to the deduction of amounts (such as interest) owed to a related cash-basis
Fitch had revised the Rating Outlook on AFC's and AFC Capital's ratings to Positive on May 6, 2005, reflecting heightened comfort with AFC's ability to generate cash-basis
and operating earnings-basis interest coverage from its property/casualty subsidiaries.
This would include gross cash-basis
trade receivables, not netted with the related cash-basis