cash basis vs. accrual
From: astromezzo (astromezzomac.com)
Date: Mon, 9 Feb 2009 18:01:01 -0800 (PST)
With tax time coming on - and our finance committee has been talking about whether we should be a cash basis or accrual basis. We had been one and then got professionals to do our taxes one year and they told the IRS we were the other. Our bookkeeper is now looking at designating us as a "modified cash basis" business. What do other cohousing associations do? We are structured as a condominium association, and have filed 1120-H and 1120 tax forms in different years. For the most part it makes sense for us to operate as a cash basis business, but occasionally would like to depreciate larger items like our plow truck.

-Rosemary
Rocky Hill Cohousing
Florence, MA

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