Tax Cuts and Jobs Act: Accounting Method Changes: Switch to Cash Method and Not Keep Inventory? (Currently Unavailable)

Author: Greg White

Can You Reduce Tax Accounting Headaches for Your Clients or Business?

In this two-hour CPE course, 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: July 2018

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
• Identify the new "nonincidental supplies" inventory method
• Recognize which clients can switch to the cash method
• Differentiate how to treat costs of self-constructed assets under the Tax Cuts and Jobs Act of 2017
• Recognize and apply the de minimis rules as affected by the Tax Cuts and Jobs Act
• Describe which clients are "tax shelters" and therefore unable to use the new accounting methods
• Describe what small business must do under TCJA
• Identify which code section can help solve the problem of double-counting income that results from a business switching to the cash method of accounting
• Recognize true statements regarding Form 3115
• Describe Revenue Procedure 2004-34
• Identify true statements regarding the de minimis election
• Describe how accounting methods relate
• Recognize the provisions the TCJA effected on a "cut off" basis
• Identify when the accounting method changes under the TCJA are effective for tax years
• Describe de minimis rules for property improvements
• Describe court rulings where statute of limitations does not apply to accounting methods
• Recognize the definition of a tax shelter and how it results to TCJA
• Differentiate which accounting method changes which won't require a Code Sec. 481a adjustment

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