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Hi All,
I have an LLC taxed as a partnership fo US tax purposes. It is a small nano-brewery which produces only 10 barrels a month so our gross receipts will be less than $80k each year.
We filed our first tax return (2011 return) in 2012 and selected the cash method of accounting. (no business receipts in 2011 so no real difference between cash vs. accrual)
This year there is some inventory...
1) am i required to account for inventory if i am using the cash basis method. Can i simply expense the supplies as incurred?
2) do i have to change to the accural method?
If so, do i simply file an amended 2011 return before i submit my 2012 return to change the method?
Thanks and regards,
BrewingFool
I have an LLC taxed as a partnership fo US tax purposes. It is a small nano-brewery which produces only 10 barrels a month so our gross receipts will be less than $80k each year.
We filed our first tax return (2011 return) in 2012 and selected the cash method of accounting. (no business receipts in 2011 so no real difference between cash vs. accrual)
This year there is some inventory...
1) am i required to account for inventory if i am using the cash basis method. Can i simply expense the supplies as incurred?
2) do i have to change to the accural method?
If so, do i simply file an amended 2011 return before i submit my 2012 return to change the method?
Thanks and regards,
BrewingFool