Becoming a Tax Ninja: Tax Accounting Methods Part 2

Author: Greg White

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This is a hands-on approach to unleashing large deductions for your clients, and helping your clients avoid significant tax risks before they mushroom into major tax issues. Buried deep in the Internal Revenue Code are the mysteries of accounting methods. These have traditionally been to exclusive province of only large accounting firms; you can bring this critical tax tool to your clients. We’ll cover the big issues, and how to make these changes with hands-on, real-life examples and filled-out Forms 3115.

Publication Date: October 2023

Topics Covered

• Changes in accounting methods for small businesses (< $26 million in trailing gross receipts)
• Accrual to cash
• No longer computing inventories
• No longer using section 263A
• Identifying tax shelters that can prevent taxpayers from qualifying as "small businesses"
• Switching from cash to accrual
• This saves some companies money

Learning Objectives

• Identify changes in accounting methods for small businesses
• Identifying tax shelters that can prevent taxpayers from qualifying as "small businesses"
• Recognize how to switch from cash to accrual
• Identify the accounting method that is required to be used by a tax shelter
• Identify the deduction type that is made as services are provided

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None