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) $500,000.
B) $1,000,000.
C) $5,000,000.
D) Partnerships may never use the cash method if they have corporate partners.

Question

Quizplus · Accepted Answer

The cash method can be used by partnerships with corporate partners if their average gross receipts for the prior three taxable years do not exceed $5,000,000.

A Partnership May Use the Cash Method Despite Having a Corporate