Cohousing-L Mailing List: cash basis vs. accrual

[astromezzo (astromezzo]

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