Tax Cuts and Jobs Act: Accounting Method Changes: Switch to Cash Method and Not Keep Inventory?
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Can You Reduce Tax Accounting Headaches for Your Clients or Business?
In this two-hour CPE webinar, experienced tax educator Greg White, CPA, will review whether it might be better for specific clients to switch to a cash accounting method and avoid the complicated inventory accounting that can make tax time a nightmare for some businesses. Be a hero to your clients and help them simplify their accounting methods and better keep track of their tax picture.
Publication Date: May 2019
Designed For
CPAs, EAs, tax staff and those who have some experience with tax preparation.
Topics Covered
- Tax Cuts and Jobs Act: Accounting Method Changes
- Forthcoming Guidance
- Section §481 Adjustments
- The "Fixer"
- Accounting Methods
- Cash Method
- After TCJA: Capitalizing Costs
- Self-constructed Assets
- Contractors Completed Contract Method
- Income Acceleration: Audited Financials
- Accrual Method: Advance Payments
- The De minimis Change & Basics
- De minimis Required Book Conformity
- Improvements and the De Minimis Rules
- Two Hurdles
- $25 Million Rule Grouping: Commonly Controlled Businesses
- Aggregation of Gross Receipts: Combined Groups
- Aggregation of Gross Receipts: Other Aggregation
- Prohibited from TCJA Accounting Methods
- Dr. Wallace and the Tax Shelter
- Sammy Davis, Jr. and TCJA
- It's Never "Too Late". . .To Make an Accounting Method Change
Learning Objectives
- Determine how to apply the new "QuickBooks" inventory method
- Recognize the new "nonincidental supplies" inventory method
- Differentiate which clients can switch to the cash method
- Determine how to treat costs of self-constructed assets under the Tax Cuts and Jobs Act of 2017
- Identify and apply the de minimis rules as affected by the Tax Cuts and Jobs Act
- Determine which clients are "tax shelters" and therefore unable to use the new accounting methods.
- Recognize which Code Section can help solve the problem of double-counting income that results from a business switching to the cash method of accounting
- Describe small businesses under the Tax Cuts and Jobs Act (TCJA)
- Describe Revenue Procedure 2004-34
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of tax accounting methods and federal income tax concepts.
Advance Preparation
None
