Overview
The Tax Cuts and Jobs Act of 2017 liberalized the use of certain methods of accounting for qualified small- and medium-sized businesses for 2018 and later years. This program is a two-hour intensive webinar on the more favorable accounting method choices available to small- and medium-sized businesses for 2020 and after.
Major Topics:
- Converting to the cash method of accounting
- Abandoning the Uniform Capitalization Rules under §263A
- Treating inventories as nonincidental materials and supplies or use an inventory method that conforms to the business’s financial accounting treatment of inventories
- Taxpayers eligible to use the completed contract method of accounting for long-term contracts
- Avoiding the application of §§451(b) and 451(c)
- How to change a method of accounting to take advantage of more favorable methods of accounting in 2020
- Section 481 adjustments for change of methods
Learning Objectives
- Understand the new rules relating to the ability of an eligible small- or medium-sized business to use a more favorable method(s) of accounting available as a result of changes made by the Tax Cuts and Jobs Act
Designed for:
Tax practitioners who anticipate advising clients with respect to more favorable accounting method changes available in 2020
Prerequisite:
A basic understanding of the tax rules relating to individual income tax
Advanced Preparation:
None