Filing initial 1065 return for MMLLC husband and wife team for an online resale business. We want to use a modified accrual method in which we account for inventory on an accrual basis using specific identification while using cash method for non-inventory expenses. Does anyone know if there is any unforeseen issues with listing "Modified Accrual" as the "other" accounting method on a 1065? This is a specific option on the Sch C, just not the 1065.
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I have used the word "Hybrid"..................?????This post is for discussion purposes only and should be verified with other sources before actual use.
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""Modified Accrual" as the "other" accounting method on a 1065? This is a specific option on the Sch C, just not the 1065."
What in the world are you talking about? The instructions for Schedule C Line F do not mention "modified accrual" as a "specific option". The instructions for Form 1065 have an entire page on accounthing methods, have you read that?
[edit] Oh, and welcome to the forum. Don't take any comments here personally, we're all just strangers on the internet discussing tax return preparation. And "hybrid" sounds like a fine choice.Last edited by Rapid Robert; 04-07-2022, 09:00 AM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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