Client received advance in 2015 to write and illustrate book that is complete and for sale in 2016. He created small business to account for income and expenses and will be report on schedule C. When the books sell, the proceeds will be credited against his advance. If he is a cash basis taxpayer, is the entire advance required to be reported in the year he receives it (2015)? Can this be set up as a Hybrid account with income reported as book sells (2016 and beyond)?
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