ARE. Fed Taxes – Tax Accounting Methods Flashcards
0
Q
How should advance payments received for rent and interest be treated by an accrual basis taxpayer?
A
Payments will be taxed in the year of receipt
1
Q
How much interest paid may be deducted by a cash basis taxpayer?
A
The amount of interest that accrued for the year
2
Q
Which type of business is generally subject to the uniform capitalization rules?
(Sec. 263A cost)
A
Manufacturers
3
Q
True or false?
A taxpayer must file an amended return for a good-faith estimate that turns out to be incorrect
A
False
make an adjustment in the year in which the actual amount is determined
