Cannot use cash method
Non s corps
Partnerships have a corp as a partner
Tax shelters
2 most common inventory methods
Cost
Lower of cost or market
What method must be used for reporting both expenses and income items
Accrual
Which inventory method requires less than 1% variance
Rolling average
Deducting a reserve for price change in value of the inventory
Is not allowed
Shipped FOB destination means
Has not arrived at other place and should be included in inventory
Form to change from one tax year to another
1128
Form 1120 schedule h is for
Pscs to figure the require min. distribution and max deductible
Form 8716 is filed by
Partnerships, s corp, psc to elect under sect 444
C corps can elect
Either calendar or fiscal year
S corp & PSC use
Calendar year
Partnerships must use a
“Required” tax year
File returns
15th day of 4th month following year close
