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)$26,000,000
D)Partnerships may never use the cash method if they have corporate partners

Question

Quizplus · Accepted Answer

The correct answer is C) $26,000,000. This threshold allows small partnerships with corporate partners to use the cash method of accounting, provided their average gross receipts for the prior three taxable years do not exceed $26,000,000. This is part of the tax rules designed to simplify accounting for smaller businesses.

A Partnership May Use the Cash Method Despite Having a Corporate