Allow Certain Cotton Warehouses to the Use of the Cash Basis of Accounting Jcx-64-89

Cover Allow Certain Cotton Warehouses to the Use of the Cash Basis of Accounting Jcx-64-89
Allow Certain Cotton Warehouses to the Use of the Cash Basis of Accounting Jcx-64-89
United States. Congress. Joint Committee On Taxation
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However, certain farming businesses, qualified personal service corporations, and entities with annual gross receipts of $5 million or less for all prior taxable years beginning after December 31, 1985, continue to use the cash method of accounting.
Explanation of Proposal The operation of a warehouse licensed for the storage of cotton under the U.S. Warehouse Act (7 U.S.C. 244), or a similar State law, would be considered to be the operation of a farming business for purposes of the exceptions
...that allow the use of the cash method of accounting.
Effective Date The proposal would be effective for taxable years beginning after December 31, 1986.
■'■ This issue was added to the list of items scheduled for a hearing on October 12, 1989, before the Ways and Means Subcommittee on Select Revenue Measures.


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