A partnership may use the cash method despite having a corporate partner when the partnership's average gross receipts for the prior three taxable years don't exceed ________.
A)$5,000,000.
B)$1,000,000.
C)$25,000,000.
D)Partnerships may never use the cash method if they have corporate partners.

Question

Quizplus · Accepted Answer

The correct answer is $25,000,000. Partnerships with a C corporation as a partner can use the cash method of accounting if their average annual gross receipts for the prior three tax years do not exceed $25 million, as per the tax reforms introduced by the Tax Cuts and Jobs Act of 2017.

A Partnership May Use the Cash Method Despite Having a Corporate