john1066
Level 1
12-07-2019
02:59 AM
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One of my clients called and told me that the tax firm that prepares his 1120-s return told him the that the new tax law that you do not include the ending inventory when the COGS is coputed.
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sjrcpa
Level 15
12-07-2019
02:59 AM
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That's BS
The more I know the more I don’t know.
The more I know the more I don’t know.
sjrcpa
Level 15
12-07-2019
02:59 AM
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There are new rules about 263A and who can use cash basis.
The more I know the more I don’t know.
The more I know the more I don’t know.
IRonMaN
Level 15
12-07-2019
02:59 AM
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I'll second the BS. Tell him he needs to find a new tax firm to prepare the 1120S.
Slava Ukraini!
Slava Ukraini!
rbynaker
Level 14
12-07-2019
02:59 AM
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Was a 3115 filed?
A "small" (under $25Mil) cash-basis taxpayer can elect to treat inventory as non-incidental materials and supplies.
Operationally I'm not sure what difference that makes since non-incidental materials and supplies are basically treated like inventory (deducted when used, rather than when paid for). But maybe I'm missing something.
