Tax reform changes accounting method rules for businesses

 

알림: 역사 콘텐츠


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December 13, 2018

Tax reform changes the cash method of accounting for some businesses.

Here’s how the rules changed. The law:

  • Allows small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting.
     
  • Exempts small business taxpayers from certain accounting rules for inventories, cost capitalization and long-term contracts.
     
  • Allows more small business taxpayers to use this cash method after December 31, 2017.