Hi guys,

I have a problem that I have not been able to figure out.

I have partnership that has less than 1 Million income. I know that we are allowed to use the cash method for our accounting purposes. When filling out the 1065 we are told to fill out the 1125 (inventory) form. The only way to fill out that form is the use the accrual method.

What am I supposed to do if I want to use the cash method? I don't want to have to pay taxes on inventory that I have not yet sold.

I really appreciate your help.

Jonathan.