An accrual basis corporation must use the cash method in claiming deductions for amounts paid to its cash basis sole shareholder.

Name: An accrual basis corporation must use the cash method in claiming deductions for amounts paid to its cash basis sole shareholder.
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Question

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An accrual basis corporation can use the cash method to deduct amounts paid to its cash basis sole shareholder only if the corporation is a personal service corporation.

An Accrual Basis Corporation Must Use the Cash Method in Claiming